Smith Micro Software, Inc. (SMSI) saw its loss narrow to $2.23 million, or $0.18 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $3.71 million, or $0.32 a share. On the other hand, adjusted net loss for the quarter narrowed to $1.38 million, or $0.11 a share from a loss of $2.06 million or $0.18 a share, a year ago. Revenue during the quarter dropped 22.71 percent to $5.58 million from $7.21 million in the previous year period. Gross margin for the quarter expanded 628 basis points over the previous year period to 76.99 percent. Operating margin for the quarter stood at negative 46.23 percent as compared to a negative 50.98 percent for the previous year period.
Operating loss for the quarter was $2.58 million, compared with an operating loss of $3.68 million in the previous year period.
"We have essentially completed the execution of Smith Micro’s restructuring plan, implemented over the past two quarters, to achieve a reduction of costs, improve utilization of our total resources, and streamline our management and business processes," said William W. Smith, Jr., president and chief executive officer of Smith Micro Software. “With our progress on these strategic efforts, we are excited and remain confident about maximizing the opportunities we continue to see ahead, particularly with our SafePath and QuickLink IoT Services (formerly known as NetWise DM/FOTA) Platforms."
Working capital drops significantly
Smith Micro Software, Inc. has witnessed a decline in the working capital over the last year. It stood at $0.17 million as at Mar. 31, 2017, down 98.54 percent or $11.18 million from $11.35 million on Mar. 31, 2016. Current ratio was at 1.02 as on Mar. 31, 2017, down from 2.40 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 12 days for the quarter from 19 days for the last year period. Days sales outstanding went up to 104 days for the quarter compared with 86 days for the same period last year.
At the same time, days payable outstanding went up to 116 days for the quarter from 69 for the same period last year.
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