FOSTER CITY, Calif., Nov. 09, 2016 (GLOBE NEWSWIRE) -- QuinStreet, Inc. (Nasdaq:QNST), the leader in performance marketing products and technologies, today announced financial results for the first quarter ended September 30, 2016. The Company also announced a corporate restructuring and other steps to accelerate margin expansion, grow cash flow, and increase shareholder value. The corporate restructuring will reduce fixed costs by approximately $17 million annually, including a reduction in personnel costs of approximately 25%. Benefits from the restructuring will begin to take effect in the December quarter. The Company also expects to incur a one-time restructuring charge in the range of $2.5 million to $3.5 million in the December quarter. The restructuring includes a reorganization that streamlines operations and increases focus on key growth products and client verticals. As part of the reorganization, the leadership of the Company's Education and Business-to-Business technology verticals has been changed, and all Financial Services verticals have been consolidated under the successful Insurance leadership team. In addition, the Company announced the authorization of a stock buyback program, initially limited to offsetting annual dilution due to equity compensation. Dilution from equity compensation has averaged approximately 1.4% of outstanding shares annually over the past five years. The Board will assess the buyback program on an ongoing basis as circumstances change. The Company also announced that it will undertake a strategic review of its business portfolio to further evaluate resource allocations and investments, and to analyze and explore possible divestitures and strategic partnerships. The objective of the review will be to identify opportunities to further increase shareholder value, and to enable greater focus on and investment in the Company's most successful products and businesses, particularly its Financial Services client vertical. For the first quarter, the Company reported total revenue of $73.4 million and GAAP net loss of $3.6 million, or ($0.08) per share. Adjusted EBITDA for the quarter was $1.0 million and adjusted net income was $631,000, or $0.01 per share. The Company generated $1.2 million in operating cash flow and closed the quarter with $53.6 million in cash and $38.6 million in net cash.
QuinStreet (Nasdaq:QNST) hit a new 52-week low Monday as it is currently trading at $7.89, below its previous 52-week low of $7.90 with 75,363 shares traded as of 4 p.m. ET. Average volume has been 357,300 shares over the past 30 days.