ServiceSource (SREV) saw its loss narrow to $9.27 million, or $0.11 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $10.90 million, or $0.13 a share. On an adjusted basis, net profit for the quarter stood at $1.34 million, or $0.02 a share compared with a net loss of $2.14 million, or $0.02 a share in the last year period. Revenue during the quarter grew 5.19 percent to $62.51 million from $59.43 million in the previous year period. Gross margin for the quarter expanded 638 basis points over the previous year period to 34.75 percent. Operating margin for the quarter stood at negative 5.94 percent as compared to a negative 13.78 percent for the previous year period.
Operating loss for the quarter was $3.71 million, compared with an operating loss of $8.19 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $4.11 million compared to negative $1.33 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 6.57 percent for the quarter compared to negative 2.23 percent in the last year period.
"In the third quarter we further accelerated the trajectory of the business, with sustained improvements across all key financial metrics," said Christopher M. Carrington, chief executive officer of ServiceSource. "On a non-GAAP basis, year-over-year revenue growth increased to 5.0%, gross profit margins expanded nearly 600 basis points, and Adjusted EBITDA improved materially to $4.1 million. Thanks to the great work of our teams around the world, our client relationships are stronger than ever. We continue to take on expanded scope across our accounts that makes us an even more mission-critical partner delivering the customer and revenue growth outcomes they need in the emerging outcome economy."
Operating cash flow improves significantly
ServiceSource has generated cash of $9.71 million from operating activities during the nine month period, up 811.36 percent or $8.64 million, when compared with the last year period. The company has spent $23.89 million cash to meet investing activities during the nine month period as against cash outgo of $20.96 million in the last year period.
The company has spent $4.78 million cash to carry out financing activities during the nine month period as against cash inflow of $2.63 million in the last year period.
Cash and cash equivalents stood at $51.70 million as on Sep. 30, 2016, down 29.98 percent or $22.13 million from $73.83 million on Sep. 30, 2015.
Working capital declines
ServiceSource has witnessed a decline in the working capital over the last year. It stood at $215.46 million as at Sep. 30, 2016, down 9.80 percent or $23.40 million from $238.85 million on Sep. 30, 2015. Current ratio was at 7.04 as on Sep. 30, 2016, down from 7.76 on Sep. 30, 2015.
Days sales outstanding went down to 82 days for the quarter compared with 88 days for the same period last year.
At the same time, days payable outstanding was almost stable at 3 days for the quarter, when compared with the previous year period.
Debt moves up
ServiceSource has witnessed an increase in total debt over the last one year. It stood at $132.65 million as on Sep. 30, 2016, up 5.13 percent or $6.47 million from $126.18 million on Sep. 30, 2015. Servicesource International has witnessed an increase in long-term debt over the last one year. It stood at $132.65 million as on Sep. 30, 2016, up 5.13 percent or $6.47 million from $126.18 million on Sep. 30, 2015. Total debt was 43.92 percent of total assets as on Sep. 30, 2016, compared with 39.55 percent on Sep. 30, 2015. Debt to equity ratio was at 1.04 as on Sep. 30, 2016, up from 0.83 as on Sep. 30, 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
