Smith Micro Software (SMSI) saw its loss widen to $4.31 million, or $0.35 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $0.77 million, or $0.07 a share. On the other hand, adjusted net loss for the quarter widened to $2.36 million, or $0.19 a share from a loss of $0.14 million or $0.01 a share, a year ago. Revenue during the quarter plunged 32.42 percent to $6.48 million from $9.59 million in the previous year period. Gross margin for the quarter contracted 732 basis points over the previous year period to 72.24 percent. Operating margin for the quarter stood at negative 70.35 percent as compared to a negative 8.01 percent for the previous year period.
Operating loss for the quarter was $4.56 million, compared with an operating loss of $0.77 million in the previous year period.
"As previously announced, revenue for the third quarter of 2016 was $6.5 million," said William W. Smith Jr., president and chief executive officer of Smith Micro Software. "During the quarter, revenue was significantly impacted by two large orders that did not close as expected, due to timing issues with our customers. We currently expect to receive these orders over the next few quarters."
Working capital drops significantly
Smith Micro Software has witnessed a decline in the working capital over the last year. It stood at $3.67 million as at Sep. 30, 2016, down 74.52 percent or $10.73 million from $14.40 million on Sep. 30, 2015. Current ratio was at 1.42 as on Sep. 30, 2016, down from 2.99 on Sep. 30, 2015. Cash conversion cycle (CCC) has increased to 15 days for the quarter from 12 days for the last year period. Days sales outstanding went up to 99 days for the quarter compared with 80 days for the same period last year.
At the same time, days payable outstanding went up to 85 days for the quarter from 71 for the same period last year.
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