Sonic Foundry, Inc. (SOFO) saw its loss narrow to $0.85 million, or $0.19 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $1.22 million, or $0.28 a share. Revenue during the quarter grew 4.41 percent to $9.46 million from $9.06 million in the previous year period. Gross margin for the quarter expanded 389 basis points over the previous year period to 75.11 percent. Operating margin for the quarter stood at negative 5.21 percent as compared to a negative 10.03 percent for the previous year period.
Operating loss for the quarter was $0.49 million, compared with an operating loss of $0.91 million in the previous year period.
"Our 2016 performance shows continued improvement in the fundamentals of our business, with healthy gains in revenues and gross margins, which are now at the higher end of our historical range, and narrowing losses at the bottom line. Billings were flat in comparison to 2015 when we benefited from four large transactions with approximately $4 million in aggregate billings. While we had no similar large transactions in 2016, we still achieved base-business growth of 12%, and the large portion of our revenues which are recurring has us approaching profitability," said Gary Weis, chief executive officer of Sonic Foundry.
Operating cash flow turns positive
Sonic Foundry, Inc. has generated cash of $1.72 million from operating activities during the year as against cash outgo of $3.13 million in the last year. The company has spent $0.34 million cash to meet investing activities during the year as against cash outgo of $0.72 million in the last year.
The company has spent $1.55 million cash to carry out financing activities during the year as against cash inflow of $1.63 million in the last year period.
Cash and cash equivalents stood at $1.79 million as on Sep. 30, 2016, down 9.21 percent or $0.18 million from $1.98 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Sonic Foundry, Inc. was negative $2.64 million on Sep. 30, 2016 compared with negative $0.62 million on Sep. 30, 2015. Current ratio was at 0.86 as on Sep. 30, 2016, down from 0.97 on Sep. 30, 2015.
Debt comes down
Sonic Foundry, Inc. has recorded a decline in total debt over the last one year. It stood at $4.82 million as on Sep. 30, 2016, down 18.11 percent or $1.06 million from $5.88 million on Sep. 30, 2015. Total debt was 14.53 percent of total assets as on Sep. 30, 2016, compared with 16.90 percent on Sep. 30, 2015. Debt to equity ratio was at 0.74 as on Sep. 30, 2016, down from 0.75 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
