RPX Corporation (RPXC) has reported a 41.44 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $5.99 million, or $0.12 a share in the quarter, compared with $4.24 million, or $0.08 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $9.58 million, or $0.19 a share compared with $7.79 million or $0.15 a share, a year ago. Revenue during the quarter grew 3.48 percent to $82.51 million from $79.74 million in the previous year period. Gross margin for the quarter contracted 239 basis points over the previous year period to 37.83 percent. Total expenses were 87.77 percent of quarterly revenues, down from 93.51 percent for the same period last year. This has led to an improvement of 574 basis points in operating margin to 12.23 percent.
Operating income for the quarter was $10.09 million, compared with $5.17 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $55.90 million compared with $54.75 million in the prior year period. At the same time, adjusted EBITDA margin contracted 92 basis points in the quarter to 67.74 percent from 68.67 percent in the last year period.
"RPX made a solid start to 2017, with top and bottom line results in line with our expectations," said Martin Roberts, chief executive officer. "The patent market continues to represent significant risk for operating companies and RPX has a variety of solutions to help them mitigate that risk. Importantly, as the nature of patent risk has evolved in recent years, we continue to develop new services to address that risk and increase the value we provide to our clients."
For the fiscal year 2017, RPX Corporation expects revenue to be in the range of $315 million to $344 million. It projects adjusted net income to be in the range of $31 million to $42 million for the same period.
For the second-quarter, RPX Corporation expects revenue to be in the range of $79 million to $82 million. It projects adjusted net income to be in the range of $5 million to $7 million. It expects adjusted operating income to be in the range of $9 million to $11 million for the same period.
Operating cash flow improves significantly
RPX Corporation has generated cash of $75.20 million from operating activities during the quarter, up 36.41 percent or $20.07 million, when compared with the last year period. The company has spent $9.89 million cash to meet investing activities during the quarter as against cash outgo of $65.58 million in the last year period.
The company has spent $7.13 million cash to carry out financing activities during the quarter as against cash inflow of $73.15 million in the last year period.
Cash and cash equivalents stood at $158.32 million as on Mar. 31, 2017, up 0.39 percent or $0.61 million from $157.71 million on Mar. 31, 2016.
Debt comes down marginally
RPX Corporation has recorded a decline in total debt over the last one year. It stood at $93.43 million as on Mar. 31, 2017, down 4.69 percent or $4.60 million from $98.03 million on Mar. 31, 2016. Total debt was 12.67 percent of total assets as on Mar. 31, 2017, compared with 23.35 percent on Mar. 31, 2016. Debt to equity ratio was at 0.20 as on Mar. 31, 2017, down from 0.64 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 11.12 for the quarter from 14.78 for the same period last year.
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