RealNetworks, Inc (RNWK) saw its loss narrow to $3.06 million, or $0.08 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $21.18 million, or $0.59 a share. Revenue during the quarter went up marginally by 0.74 percent to $31.05 million from $30.82 million in the previous year period. Gross margin for the quarter expanded 478 basis points over the previous year period to 46.09 percent. Operating margin for the quarter stood at negative 27.02 percent as compared to a negative 71.25 percent for the previous year period.
Operating loss for the quarter was $8.39 million, compared with an operating loss of $21.96 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $4.45 million compared to negative $12.19 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 14.33 percent for the quarter compared to negative 39.56 percent in the last year period.
"For 2016 we established three major financial goals. We're on course to achieve two of them," said Rob Glaser, Chairman and Chief executive officer of RealNetworks. "We've stabilized our businesses and have begun to see revenue growth.
For the fourth-quarter, Realnetworks forecasts revenue to be in the range of $29 million to $32 million.
Operating cash flow remains negative
RealNetworks, Inc has spent $22.29 million cash to meet operating activities during the nine month period as against cash outgo of $55.97 million in the last year period. Cash flow from investing activities was $13.49 million for the nine month period, down 21.70 percent or $3.74 million, when compared with the last year period.
The company has spent $0.68 million cash to carry out financing activities during the nine month period as against cash inflow of $0.23 million in the last year period.
Cash and cash equivalents stood at $38.28 million as on Sep. 30, 2016, down 38.08 percent or $23.55 million from $61.83 million on Sep. 30, 2015.
Working capital declines
RealNetworks, Inc has witnessed a decline in the working capital over the last year. It stood at $73.24 million as at Sep. 30, 2016, down 22.66 percent or $21.47 million from $94.71 million on Sep. 30, 2015. Current ratio was at 2.89 as on Sep. 30, 2016, down from 3.11 on Sep. 30, 2015.
Days sales outstanding went up to 70 days for the quarter compared with 63 days for the same period last year.
At the same time, days payable outstanding went up to 101 days for the quarter from 87 for the same period last year.
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