Descartes Systems Group (DSGX) has reported 15.93 percent rise in profit for the year ended Jan. 31, 2017. The company has earned $23.84 million, or $0.31 a share in the year, compared with $20.56 million, or $0.27 a share for the last year.
Revenue during the year grew 10.15 percent to $203.78 million from $184.99 million in the previous year. Gross margin for the year expanded 161 basis points over the previous year to 72.49 percent. Total expenses were 84.94 percent of annual revenues, up from 84.81 percent for the last year. That has resulted in a contraction of 12 basis points in operating margin to 15.06 percent.
Operating income for the year was $30.70 million, compared with $28.10 million in the previous year.
However, the adjusted EBITDA for the year stood at $70.10 million compared with $60.90 million in the prior year period. At the same time, adjusted EBITDA margin improved 148 basis points in the year to 34.40 percent from 32.92 percent in the last year period.
"Descartes is a trusted party focused on helping our customers manage complexity and change in logistics and supply chains," said Edward J. Ryan, Descartes’ chief executive officer. "Our strong financial performance this past year illustrates the value we bring to customers amid global trade uncertainty via our efficient Global Logistics Network GLN infrastructure. We continue to invest in the GLN and our products both organically and through acquisitions, including the 4 businesses we combined with last year. Combined with our available capital and our track record of execution, Descartes and the GLN is a solid platform for continued growth and acquisitions."
Operating cash flow improves significantlyDescartes Systems Group has generated cash of $72.58 million from operating activities during the year, up 33.81 percent or $18.34 million, when compared with the last year. The company has spent $70.36 million cash to meet investing activities during the year as against cash outgo of $129.83 million in the last year. It has incurred net capital expenditure of $66.43 million on net basis during the year, down 43 percent or $50.11 million from year ago.
The company has spent $0.21 million cash to carry out financing activities during the year as against cash outgo of $2.43 million in the last year period.
Cash and cash equivalents stood at $38.14 million as on Jan. 31, 2017, up 2.48 percent or $0.92 million from $37.21 million on Jan. 31, 2016.
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