Agilysys, Inc. (AGYS) saw its loss widen to $1.74 million, or $0.08 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $1.67 million, or $0.07 a share. Revenue during the quarter grew 6.84 percent to $33.45 million from $31.31 million in the previous year period. Gross margin for the quarter contracted 417 basis points over the previous year period to 48.56 percent. Operating margin for the quarter stood at negative 4.87 percent as compared to a negative 5.36 percent for the previous year period.
Operating loss for the quarter was $1.63 million, compared with an operating loss of $1.68 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.96 million compared with $0.58 million in the prior year period. At the same time, adjusted EBITDA margin improved 702 basis points in the quarter to 8.86 percent from 1.84 percent in the last year period.
Ramesh Srinivasan, president and chief executive officer of Agilysys, commented, "Our fiscal 2017 third quarter results demonstrate progress in multiple areas of the business. Compared to the same period last year, our installed point of sale end points increased 15% and the number of rooms managed by our lodging solutions rose 6%. Our subscription based SaaS revenue improved 48% compared to the third quarter of last year. Our total contract value for subscription based SaaS licenses sold nearly doubled during the first nine months of fiscal 2017 compared to the same period last year. Our recurring revenue, of which SaaS revenue is a growing component, is a source of considerable strength for us in terms of increasing future earnings predictability."
For financial year 2017, Agilysys, Inc. expects revenue to be in the range of $128 million to $131 million.
Operating cash flow drops significantly
Agilysys, Inc. has generated cash of $5.39 million from operating activities during the nine month period, down 35.13 percent or $2.92 million, when compared with the last year period. The company has spent $12.50 million cash to meet investing activities during the nine month period as against cash outgo of $17.17 million in the last year period.
The company has spent $0.69 million cash to carry out financing activities during the nine month period as against cash outgo of $0.46 million in the last year period.
Cash and cash equivalents stood at $52.71 million as on Dec. 31, 2016, down 19.71 percent or $12.94 million from $65.65 million on Dec. 31, 2015.
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