Systemax (SYX) saw its loss narrow to $2.10 million, or $0.06 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $32.50 million, or $0.87 a share. On the other hand, adjusted net income for the quarter stood at $3 million, or $0.08 a share compared with $1.30 million or $0.04 a share, a year ago.
Revenue during the quarter dropped 10.87 percent to $414.70 million from $465.30 million in the previous year period. Gross margin for the quarter expanded 102 basis points over the previous year period to 19.70 percent. Total expenses were 98.31 percent of quarterly revenues, down from 99.74 percent for the same period last year. This has led to an improvement of 143 basis points in operating margin to 1.69 percent.
Operating income for the quarter was $7 million, compared with $1.20 million in the previous year period.
However, the adjusted operating income for the quarter stood at $6.50 million compared to $3.60 million in the prior year period. At the same time, adjusted operating margin improved 79 basis points in the quarter to 1.57 percent from 0.77 percent in the last year period.
Larry Reinhold, chief executive officer, said, "To support our growth and improve profitability, during the past year we have significantly streamlined our corporate structure while continuing to invest in our ongoing businesses. The initial impacts of these efforts are reflected in our improved operating results for the quarter, as we returned to overall profitability on both a GAAP and non-GAAP basis."
Working capital declinesSystemax has witnessed a decline in the working capital over the last year. It stood at $186.20 million as at Dec. 31, 2016, down 13.07 percent or $28 million from $214.20 million on Dec. 31, 2015. Current ratio was at 1.57 as on Dec. 31, 2016, up from 1.50 on Dec. 31, 2015.
Debt comes down significantlySystemax has recorded a decline in total debt over the last one year. It stood at $0.20 million as on Dec. 31, 2016, down 80 percent or $0.80 million from $1 million on Dec. 31, 2015. Total debt was 0.04 percent of total assets as on Dec. 31, 2016, compared with 0.14 percent on Dec. 31, 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
