Streamline Health Solutions, Inc. (STRM) saw its loss widen to $2.04 million, or $0.10 a share for the quarter ended Apr. 30, 2017. In the previous year period, the company reported a loss of $1.48 million, or $0.10 a share.
Revenue during the quarter dropped 11.15 percent to $5.92 million from $6.67 million in the previous year period. Gross margin for the quarter contracted 752 basis points over the previous year period to 51.59 percent. Operating margin for the quarter stood at negative 31.65 percent as compared to a negative 20.70 percent for the previous year period.
Operating loss for the quarter was $1.87 million, compared with an operating loss of $1.38 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.44 million compared with $0.60 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 7.41 percent for the quarter compared to 8.94 percent in the last year period.
"Our first quarter financial performance was as previously communicated, with a decline in revenue from Q4 of 2016 based primarily upon the anticipated revenue attrition of approximately $0.5 million combined with the negative net effect of selling our Scheduling solution suite while adding code auditing services," stated David Sides, president and chief executive officer, Streamline Health. "However, as we look at the remainder of the year, we are encouraged by the sales activity we are experiencing primarily with our new cloud-based pre-bill audit solution we call eValuator. We acquired the initial concept for this new solution in September, invested development resources into it in the second half of last year and formally launched it at the HIMSS conference in February. In just four months, the top of our sales pipeline has expanded substantially with more than 50 current clients and new prospects interested in eValuator."
Operating cash flow remains negative
Streamline Health Solutions, Inc. has spent $1.45 million cash to meet operating activities during the quarter as against cash outgo of $2.46 million in the last year period.
The company has spent $0.40 million cash to meet investing activities during the quarter as against cash outgo of $0.51 million in the last year period.
The company has spent $0.23 million cash to carry out financing activities during the quarter as against cash outgo of $0.40 million in the last year period.
Cash and cash equivalents stood at $3.58 million as on Apr. 30, 2017, down 45.10 percent or $2.94 million from $6.52 million on Apr. 30, 2016.
Working capital remains negative
Working capital of Streamline Health Solutions, Inc. was negative $2.13 million on Apr. 30, 2017 compared with negative $0.11 million on Apr. 30, 2016. Current ratio was at 0.81 as on Apr. 30, 2017, down from 0.99 on Apr. 30, 2016.
Days sales outstanding went up to 64 days for the quarter compared with 29 days for the same period last year.
At the same time, days payable outstanding went up to 31 days for the quarter from 28 for the same period last year.
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