Tesco Corporation (TESO) saw its loss narrow to $13.70 million, or $0.29 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $56.80 million, or $1.45 a share. On the other hand, adjusted net loss for the quarter narrowed to $13.40 million, or $0.29 a share from a loss of $17.90 million or $0.46 a share, a year ago.
Revenue during the quarter grew 3.38 percent to $36.70 million from $35.50 million in the previous year period. Gross margin for the quarter stood at negative 15.80 percent as compared to a negative 32.11 percent for the previous year period.
Operating loss for the quarter was $12.90 million, compared with an operating loss of $54.80 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $12.10 million compared to operating loss of $17.20 million in prior year period.
Fernando Assing, TESCO's president and chief executive officer, commented, "While our first quarter results reflect the benefit of the stronger U.S. land market, the results also reflect the continued weakness in multiple international and offshore markets. We continue to deploy our new technologies and commercial innovation to be positioned to take advantage of opportunities in these markets as they begin to recover in subsequent quarters."
Operating cash flow turns negative
Tesco Corp has spent $8.90 million cash to meet operating activities during the quarter as against cash inflow of $2.10 million in the last year period.
The company has spent $0.30 million cash to meet investing activities during the quarter as against cash inflow of $0.30 million in the last year period.
Cash flow from financing activities was almost stable for the quarter at $0.80 million, when compared with the previous year period.
Cash and cash equivalents stood at $83.10 million as on Mar. 31, 2017, up 54.20 percent or $29.21 million from $53.89 million on Mar. 31, 2016.
Working capital remains almost stable
Working capital of Tesco Corp remained almost stable for the quarter at $181.20 million, when compared with the previous year period. Current ratio was at 6.51 as on Mar. 31, 2017, up from 5.83 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 186 days for the quarter from 320 days for the last year period. Days sales outstanding went down to 137 days for the quarter compared with 164 days for the same period last year.
Days inventory outstanding has decreased to 78 days for the quarter compared with 183 days for the previous year period. At the same time, days payable outstanding went up to 29 days for the quarter from 27 for the same period last year.
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