Research Solutions, Inc. (RSSS) saw its loss widen to $0.84 million, or $0.04 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $0.30 million, or $0.02 a share.
Revenue during the quarter dropped 8.43 percent to $8.53 million from $9.32 million in the previous year period. Gross margin for the quarter expanded 160 basis points over the previous year period to 18.73 percent. Operating margin for the quarter stood at negative 9.80 percent as compared to a negative 3.16 percent for the previous year period.
Operating loss for the quarter was $0.84 million, compared with an operating loss of $0.29 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.48 million compared with $0.01 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 5.66 percent for the quarter compared to 0.06 percent in the last year period.
"During the second quarter, our platform business continued its strong revenue momentum, growing more than double the same quarter last year and 27% on a sequential quarterly basis," said Peter Derycz, president and CEO of Research Solutions. "Roughly two-thirds of this growth came from new customers, reaffirming the sizeable market of small-to-medium sized businesses our platform solution enables us to target.
Working capital increases sharply
Research Solutions, Inc. has recorded an increase in the working capital over the last year. It stood at $4.95 million as at Dec. 31, 2016, up 444.97 percent or $4.04 million from $0.91 million on Dec. 31, 2015. Current ratio was at 1.60 as on Dec. 31, 2016, up from 1.13 on Dec. 31, 2015.
Days sales outstanding went up to 54 days for the quarter compared with 51 days for the same period last year.
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