Synacor Inc (SYNC) saw its loss widen to $6.66 million, or $0.21 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.56 million, or $0.05 a share. Revenue during the quarter dropped 12.29 percent to $26.54 million from $30.26 million in the previous year period. Gross margin for the quarter contracted 446 basis points over the previous year period to 52.67 percent. Operating margin for the quarter stood at negative 23.09 percent as compared to a negative 4.48 percent for the previous year period.
Operating loss for the quarter was $6.13 million, compared with an operating loss of $1.36 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $3.30 million compared with $1.48 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 12.43 percent for the quarter compared to 4.89 percent in the last year period.
“We continue to see strong customer affirmation of Synacor platforms, as we renew and expand key current relationships and win new customers. And I’m pleased to announce that the new ATT.net portal is live and the phased rollout is well underway,” said Synacor chief executive officer Himesh Bhise.
For the second-quarter, Synacor expects revenue to be in the range of $28 million to $30 million. Synacor expects revenue to be in the range of $160 million to $170 million for financial year 2017. Synacor forecasts net loss to be in the range of $3 million to $5 million for the second-quarter. For fiscal year 2017, Synacor forecasts net loss to be in the range of $2.80 million to $8 million.
Operating cash flow turns negative
Synacor Inc has spent $0.97 million cash to meet operating activities during the quarter as against cash inflow of $3.85 million in the last year period. The company has spent $1.52 million cash to meet investing activities during the quarter as against cash outgo of $3.44 million in the last year period.
The company has spent $0.58 million cash to carry out financing activities during the quarter as against cash outgo of $0.38 million in the last year period.
Cash and cash equivalents stood at $11.26 million as on Mar. 31, 2017, down 28.49 percent or $4.49 million from $15.75 million on Mar. 31, 2016.
Working capital turns negative
Working capital of Synacor Inc has turned negative to $2.46 million on Mar. 31, 2017 from positive $9.11 million on Mar. 31, 2016. Current ratio was at 0.93 as on Mar. 31, 2017, down from 1.27 on Mar. 31, 2016.
Days sales outstanding were almost stable at 70 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 86 days for the quarter from 74 for the same period last year.
Debt remains almost stable
Synacor Inc has recorded a decline in total debt over the last one year. It stood at $7.20 million as on Mar. 31, 2017, down 0.85 percent or $0.06 million from $7.26 million on Mar. 31, 2016. Total debt was 8.94 percent of total assets as on Mar. 31, 2017, compared with 8.05 percent on Mar. 31, 2016. Debt to equity ratio was at 0.21 as on Mar. 31, 2017, up from 0.16 as on Mar. 31, 2016.
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