Dice Holdings (DHX), a provider of career websites and career fairs for professional communities, has announced a 9.59 percent decline in profit for the quarter ended Jun. 30, 2014, amid increase in operating expenses.
The company earned $7.21 million or $0.13 a share in the second-quarter compared with $7.97 million or $0.13 a share a year ago. Analysts on average had predicted net income of $0.07 a share.
Revenue during the second-quarter climbed 27.94 percent to $66.54 million from $52.01 million in the last year period.
Gross margin contracted by 349 basis points over the last year period to 85.68 percent. Total expenses as a percentage of revenues increased to 80.48 percent from 75.58 percent in the same period last year. That has resulted in contraction of 490 basis points in operating margins to 19.52 percent.
The company reported operating income of $12.99 million, compared with $12.70 million in the previous year period.
''We are pleased with our results, advancing on the progress we made in the first three months of the year. There is much more opportunity to leverage our specialty focus with great products and apps, as well as data and analytics to spark stronger future growth in each of our verticals,'' said Michael Durney, president and CEO of Dice Holdings, Inc.
Cash Flow
Dice Holdings has generated cash of $33.36 million from operating activities during the first half, down 3.83 percent or $1.33 million when compared with the last year period. The company has generated 26.22 cents of operating cash flow in every sales dollar for the first half, down from 33.87 cents in the same period last year.
The company has spent $31.95 million cash to meet investing activities during the first half, as against cash outgo of $3.56 million in the last year period. It has made net capital expenditure of $4.95 million during the first half, which was lower by 13.95 percent or $0.80 million, from a year ago.
The company's free cash flow accounted for 85.18 percent of operating cash flow for the first half, compared with 83.43 percent in the last year period.
The company has spent $18.78 million cash to meet financing activities during the first half, as against cash outgo of $29.50 million in the last year period. It has made net repayment of $2.25 million debt during the first half. It has spent net of $16.34 million on repurchase of common stocks.
As on Jun. 30, 2014, the company's cash balance stood at $20.05 million, down 50.61 percent or $20.55 million from Jun. 30, 2013.
Working Capital
Dice Holdings' working capital remained negative at $56.10 million on Jun. 30, 2014, compared with negative $30.07 million on Jun. 30, 2013. It registered a decrease in current ratio to 0.54 as at Jun. 30, 2014 from 0.69 on Jun. 30, 2013.
Shares of the company gained $0.96 or 0.96 percent to settle at $8.73 on Wednesday.
