RPX Corporation (RPXC) has reported 68.64 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $1.73 million, or $0.03 a share in the quarter, compared with $5.53 million, or $0.10 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $6.20 million, or $0.12 a share compared with $11.70 million or $0.21 a share, a year ago. Revenue during the quarter grew 12.32 percent to $81.80 million from $72.83 million in the previous year period. Gross margin for the quarter contracted 655 basis points over the previous year period to 39.25 percent. Total expenses were 90.14 percent of quarterly revenues, up from 81.93 percent for the same period last year. That has resulted in a contraction of 821 basis points in operating margin to 9.86 percent.
Operating income for the quarter was $8.06 million, compared with $13.16 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $54.60 million compared with $56.50 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1083 basis points in the quarter to 66.75 percent from 77.58 percent in the last year period.
"RPX was founded to bring efficiency and transparency to the patent market, and our financial performance in 2016 reflects our continued progress in achieving that goal," said Martin Roberts, Interim chief executive officer and General Counsel of RPX Corp. "With our increased emphasis on improving execution, generating cash and returning value to shareholders, we enter 2017 as a stronger, more nimble organization and are optimistic about RPX’s opportunity to further impact both the patent and eDiscovery markets."
For the first-quarter, RPX Corporation forecasts revenue to be in the range of $80 million to $82 million. RPX Corporation forecasts revenue to be in the range of $315 million to $344 million for fiscal year 2017. RPX Corporation expects adjusted net income to be in the range of $5 million to $7 million for the first-quarter. For the financial year 2017, Rpx expects adjusted net income to be in the range of $31 million to $42 million. The company forecasts adjusted operating income to be in the range of $9 million to $11 million for the first-quarter.
Operating cash flow improvesRPX Corporation has generated cash of $187.26 million from operating activities during the year, up 8.10 percent or $14.03 million, when compared with the last year. The company has spent $213.48 million cash to meet investing activities during the year as against cash outgo of $134.87 million in the last year.
Cash flow from financing activities was $32.05 million for the year as against cash outgo of $21.39 million in the last year period.
Cash and cash equivalents stood at $100.11 million as on Dec. 31, 2016, up 5.40 percent or $5.13 million from $94.98 million on Dec. 31, 2015.
Working capital drops significantly
RPX Corporation has witnessed a decline in the working capital over the last year. It stood at $113.60 million as at Dec. 31, 2016, down 49.21 percent or $110.08 million from $223.68 million on Dec. 31, 2015. Current ratio was at 1.77 as on Dec. 31, 2016, down from 2.73 on Dec. 31, 2015.
Days sales outstanding went up to 36 days for the quarter compared with 9 days for the same period last year.
At the same time, days payable outstanding went up to 3 days for the quarter from 1 for the same period last year.
Debt increases substantially
RPX Corporation has witnessed an increase in total debt over the last one year. It stood at $94.58 million as on Dec. 31, 2016, up 3,869.11 percent or $92.20 million from $2.38 million on Dec. 31, 2015. Long-term debt stood at $88.11 million as on Dec. 31, 2016. Total debt was 12.86 percent of total assets as on Dec. 31, 2016, compared with 0.36 percent on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
