Agilysys, Inc. (AGYS) saw its loss widen to $5.29 million, or $0.23 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.54 million, or $0.07 a share. Revenue during the quarter dropped 4.14 percent to $30.60 million from $31.92 million in the previous year period. Gross margin for the quarter contracted 458 basis points over the previous year period to 50.57 percent. Operating margin for the quarter stood at negative 17.13 percent as compared to a negative 6.20 percent for the previous year period.
Operating loss for the quarter was $5.24 million, compared with an operating loss of $1.98 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.23 million compared with $1.02 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 0.76 percent for the quarter compared to 3.19 percent in the last year period.
Ramesh Srinivasan, president and chief executive officer of Agilysys, commented, "Agilysys experienced a challenging transition period in the middle quarters of fiscal 2017, which given our relatively long sales cycles, impacted our quarterly results over the last half of the fiscal year. Notwithstanding the challenges of this transition period, we generated solid year over year revenue growth in fiscal 2017. This revenue growth included significant improvement in recurring revenue, particularly for our subscription based SaaS recurring revenue, which continues to grow at a faster pace than our overall recurring revenue growth rate. Further, our installed point of sale end points rose 12% and the number of rooms managed by our lodging solutions increased 4% year over year."
Operating cash flow drops significantly
Agilysys, Inc. has generated cash of $3.43 million from operating activities during the year, down 52.44 percent or $3.78 million, when compared with the last year. The company has spent $13.86 million cash to meet investing activities during the year as against cash outgo of $21.01 million in the last year.
The company has spent $0.85 million cash to carry out financing activities during the year as against cash outgo of $0.58 million in the last year period.
Cash and cash equivalents stood at $49.26 million as on Mar. 31, 2017, down 18.73 percent or $11.35 million from $60.61 million on Mar. 31, 2016.
Debt comes down significantly
Agilysys, Inc. has recorded a decline in total debt over the last one year. It stood at $0.24 million as on Mar. 31, 2017, down 28.83 percent or $0.10 million from $0.33 million on Mar. 31, 2016. Total debt was 0.14 percent of total assets as on Mar. 31, 2017, compared with 0.18 percent on Mar. 31, 2016.
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