ShoreTel Inc (SHOR) saw its loss narrow to $2.94 million, or $0.04 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $8.71 million, or $0.13 a share. On an adjusted basis, net profit for the quarter stood at $0.55 million, or $0.01 a share compared with a net loss of $3.91 million, or $0.06 a share in the last year period. Revenue during the quarter went up marginally by 2.93 percent to $87.73 million from $85.24 million in the previous year period. Gross margin for the quarter expanded 257 basis points over the previous year period to 64.09 percent. Operating margin for the quarter stood at negative 4.06 percent as compared to a negative 10.21 percent for the previous year period.
Operating loss for the quarter was $3.56 million, compared with an operating loss of $8.70 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $1 million compared to operating loss of $3.90 million in prior year period.
"Total revenue, profitability and cash flow from operations showed improvements on a year over year comparison. We have implemented and will continue to identify actions to further improve the company's growth," said Don Joos, president and chief executive officer of ShoreTel. "The board's Strategic Advisory Committee continues to evaluate alternatives to increase shareholder value."
For the fourth-quarter, Shoretel projects revenue to be in the range of $88 million to $94 million.
Working capital increases
ShoreTel Inc has recorded an increase in the working capital over the last year. It stood at $53.92 million as at Mar. 31, 2017, up 12.38 percent or $5.94 million from $47.98 million on Mar. 31, 2016. Current ratio was at 1.51 as on Mar. 31, 2017, up from 1.44 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 7 days for the quarter from 32 days for the last year period. Days sales outstanding were almost stable at 28 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 20 days for the quarter compared with 41 days for the previous year period. At the same time, days payable outstanding went up to 42 days for the quarter from 38 for the same period last year.
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