Csg Systems International (CSGS) has reported 46.56 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $12.65 million, or $0.38 a share in the quarter, compared with $23.67 million, or $0.70 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $18.86 million, or $0.57 a share compared with $26.29 million or $0.77 a share, a year ago.
Revenue during the quarter went down marginally by 1.07 percent to $195.17 million from $197.29 million in the previous year period. Gross margin for the quarter contracted 256 basis points over the previous year period to 49.04 percent. Total expenses were 87 percent of quarterly revenues, up from 82.73 percent for the same period last year. That has resulted in a contraction of 427 basis points in operating margin to 13 percent.
Operating income for the quarter was $25.37 million, compared with $34.07 million in the previous year period.
However, the adjusted operating income for the quarter stood at $33.79 million compared to $43.54 million in the prior year period. At the same time, adjusted operating margin contracted 476 basis points in the quarter to 17.31 percent from 22.07 percent in the last year period.
"We are executing well against our strategy to drive profitable growth," said Bret Griess, president and chief executive officer for CSG International. "We are seeing the results from actions that we took several years ago to evolve our own business model to one that leverages our domain expertise in managing large, complex platforms on behalf of our clients with managed services relationships. Additionally, we are gaining traction with our next generation Ascendon cloud-based, SaaS platform that enables service providers to respond to new digital services opportunities in real-time across the globe" driving the shift from legacy systems to a future ready approach. Finally, we continue to reinforce our well known reputation of delivering day-in and day-out on behalf of some of the world’s leading communications providers " and innovators" around the world."
For fiscal year 2017, Csg Systems International expects revenue to be in the range of $760 million to $785 million. It forecasts net income to be in the range of $61 million to $67 million. The Company projects adjusted net income to be in the range of $77 million to $82.50 million, the company forecasts operating income to be $112.60 million. The company projects diluted earnings per share to be in the range of $1.85 to $2.03, the company projects diluted earnings per share to be in the range of $2.33 to $2.49 on adjusted basis.
Operating cash flow drops significantlyCsg Systems International has generated cash of $84.19 million from operating activities during the year, down 38.53 percent or $52.77 million, when compared with the last year. The company has spent $52.14 million cash to meet investing activities during the year as against cash outgo of $16.72 million in the last year.
The company has spent $42.95 million cash to carry out financing activities during the year as against cash outgo of $64.60 million in the last year period.
Cash and cash equivalents stood at $126.35 million as on Dec. 31, 2016, down 4.73 percent or $6.28 million from $132.63 million on Dec. 31, 2015.
Debt increases substantiallyCsg Systems International has witnessed an increase in total debt over the last one year. It stood at $376.42 million as on Dec. 31, 2016, up 34.85 percent or $97.29 million from $279.13 million on Dec. 31, 2015. Total debt was 42.21 percent of total assets as on Dec. 31, 2016, compared with 31.82 percent on Dec. 31, 2015. Debt to equity ratio was at 1.50 as on Dec. 31, 2016, up from 0.81 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 5.78 for the quarter from 13.43 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
