PC Connection, Inc (PCCC) has reported a 4.53 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $13 million, or $0.49 a share in the quarter, compared with $13.61 million, or $0.51 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $14.17 million, or $0.53 a share compared with $13.79 million or $0.52 a share, a year ago. Revenue during the quarter grew 7.49 percent to $735.55 million from $684.32 million in the previous year period. Gross margin for the quarter contracted 8 basis points over the previous year period to 13.34 percent. Total expenses were 97.02 percent of quarterly revenues, up from 96.65 percent for the same period last year. That has resulted in a contraction of 37 basis points in operating margin to 2.98 percent.
Operating income for the quarter was $21.90 million, compared with $22.89 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $26.47 million compared with $25.82 million in the prior year period. At the same time, adjusted EBITDA margin contracted 17 basis points in the quarter to 3.60 percent from 3.77 percent in the last year period.
“The Company achieved record sales and gross profit this quarter in an overall muted IT spending environment,” said Timothy McGrath, president and chief executive officer. “The recent acquisitions of Softmart and GlobalServe have expanded our capabilities and added significantly to our customer count, sales headcount, and technical personnel. We believe our team and the strategies we have in place position us well to gain market share and increase long-term shareholder value,” concluded Mr. McGrath.
Operating cash flow improves
PC Connection, Inc has generated cash of $33.59 million from operating activities during the year, up 8.83 percent or $2.72 million, when compared with the last year. The company has spent $54.88 million cash to meet investing activities during the year as against cash outgo of $12.79 million in the last year.
The company has spent $9.72 million cash to carry out financing activities during the year as against cash inflow of $1.20 million in the last year period.
Cash and cash equivalents stood at $49.18 million as on Dec. 31, 2016, down 38.67 percent or $31.01 million from $80.19 million on Dec. 31, 2015.
Working capital remains almost stable
PC Connection, Inc has witnessed a decline in the working capital over the last year. It stood at $328.92 million as at Dec. 31, 2016, down 0.58 percent or $1.93 million from $330.85 million on Dec. 31, 2015. Current ratio was at 2.43 as on Dec. 31, 2016, down from 2.49 on Dec. 31, 2015.
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