DataWind Reports Fiscal 2018 Year Q1 Results

DataWind (TSX:DW) has announced its financial results for its fiscal 2018 Q1 results ending June 30, 2017.
As quoted in the press release:

Financial and Operational Highlights

• Revenues of $8.1 million during the three months ending June 30, 2017 representing a slight decrease of 2.0% over the three months ending March 31, 2017; but a more substantial decrease of 61.4% over the three months ending June 30, 2016, due to the impact of demonetization in India.
• 126,439 units sold in Q1 2018 compared to 97,096 units sold in Q4 2017.
• Quarterly gross margin in Q1 2018 is 25.2% compared to 19.6% in Q4 2017 and 33.4% in Q1 2017.
• Adjusted EBITDA for the quarter ended June 30, 2017 is ($4.2 million) compared to EBITDA of $(12.9 million) for the quarter ended March 31, 2017 representing an improvement of $8.7 million.

Management Commentary
The Company continues to recover from the impact of November 2016’s demonetization by the Indian government. The resulting shift to a TV infomercial based business model has allowed the Company better control on its cash flow and payment collections, as it strives to reach breakeven. As a result of this shift, receivable collection has improved to 29 days at June 30, 2017 compared to 137 days at June 30, 2016.
“We see significant opportunity for growth by using direct TV infomercials to sell our products in India. This essentially eliminates credit risk and removes any middle-man between us and our customer. As we continue to tweak complex variables associated with selling via infomercials, we are aggressively working towards breakeven.” said Suneet Singh Tuli, president and CEO of DataWind.

Click here to read the full press release.