Salon Media Group, Inc. (SLNM) saw its loss widen to $0.87 million, or $0.01 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $0.50 million, or $0.01 a share.
Revenue during the quarter plunged 41.01 percent to $0.99 million from $1.68 million in the previous year period. Gross margin for the quarter contracted 3718 basis points over the previous year period to 7.44 percent. Operating margin for the quarter stood at negative 86.02 percent as compared to a negative 28.84 percent for the previous year period.
Operating loss for the quarter was $0.86 million, compared with an operating loss of $0.49 million in the previous year period.
"During the second quarter, we continued our transition from direct to programmatic advertising while refining our content strategy to become a leading 21st century media company. Our goal is to deliver the highest quality content in all formats and increase revenue growth via programmatic advertising while maintaining operational efficiency," said Jordan Hoffner, chief executive officer of Salon Media Group. "We are excited about our future and are committed to fulfilling our mission to make a broader impact journalistically while maximizing shareholder value."
Working capital remains negative
Working capital of Salon Media Group, Inc. was negative $10.22 million on Sep. 30, 2016 compared with negative $7.85 million on Sep. 30, 2015. Current ratio was at 0.08 as on Sep. 30, 2016, down from 0.17 on Sep. 30, 2015.
Days sales outstanding went up to 88 days for the quarter compared with 68 days for the same period last year.
Debt moves up
Salon Media Group, Inc. has witnessed an increase in total debt over the last one year. It stood at $1.20 million as on Sep. 30, 2016, up 20 percent or $0.20 million from $1 million on Sep. 30, 2015. Salon Media Group has witnessed an increase in short-term debt over the last one year. It stood at $1.20 million as on Sep. 30, 2016, up 20 percent or $0.20 million from $1 million on Sep. 30, 2015. Total debt was 87.27 percent of total assets as on Sep. 30, 2016, compared with 50.15 percent on Sep. 30, 2015.
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