Straight Path Communications Inc. (STRP) saw its loss widen to $25.42 million, or $2.10 a share for the quarter ended Jan. 31, 2017. In the previous year period, the company reported a loss of $2.03 million, or $0.17 a share.
Revenue during the quarter surged 47.32 percent to $0.16 million from $0.11 million in the previous year period. Gross margin for the quarter contracted 415 basis points over the previous year period to 84.24 percent.
Operating loss for the quarter was $25.79 million, compared with an operating loss of $2.62 million in the previous year period.
Davidi Jonas, chief executive officer of Straight Path commented, "I am proud to announce that Straight Path continues to deliver on its strategic objectives and adhere to its mission. We have resolved some serious challenges, and are able to pursue continued progress in several key areas of our business."
Operating cash flow remains negative
Straight Path Communications Inc. has spent $3.53 million cash to meet operating activities during the first half as against cash outgo of $3.22 million in the last year period.
Cash flow from financing activities was $0.01 million for the first six months, up 700 percent or $0.01 million, when compared with the last year period.
Cash and cash equivalents stood at $7.84 million as on Jan. 31, 2017, down 48.94 percent or $7.51 million from $15.35 million on Jan. 31, 2016.
Working capital turns negative
Working capital of Straight Path Communications Inc. has turned negative to $7.36 million on Jan. 31, 2017 from positive $14.74 million on Jan. 31, 2016. Current ratio was at 0.56 as on Jan. 31, 2017, down from 16.94 on Jan. 31, 2016.
Days sales outstanding went down to 35 days for the quarter compared with 54 days for the same period last year.
At the same time, days payable outstanding went up to 2052 days for the quarter from 948 for the same period last year.
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