J2 GLOBAL (JCOM) has reported 21.92 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $45.57 million, or $0.94 a share in the quarter, compared with $37.38 million, or $0.77 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $60.66 million, or $1.25 a share compared with $50.71 million or $1.04 a share, a year ago.
Revenue during the quarter grew 17.58 percent to $210.12 million from $178.70 million in the previous year period. Gross margin for the quarter contracted 44 basis points over the previous year period to 82.39 percent. Total expenses were 70.43 percent of quarterly revenues, up from 68.81 percent for the same period last year. That has resulted in a contraction of 162 basis points in operating margin to 29.57 percent.
Operating income for the quarter was $62.12 million, compared with $55.73 million in the previous year period.
"Our third quarter results highlight the positive combination of healthy revenue growth and efficient expense management" said Hemi Zucker, chief executive officer of j2 Global. "Our efforts yielded an impressive 20% year-over-year Adjusted non-GAAP Diluted EPS increase and 18% year-over-year revenue growth. With the excellent results for the first nine months of the year, I am pleased to announce that our results are trending toward the higher end of our Adjusted non-GAAP earnings per diluted share guidance for the year."
For fiscal year 2016, J2 GLOBAL forecasts revenue to be in the range of $830 million to $860 million. The company expects diluted earnings per share to be in the range of $4.70 to $5 on adjusted basis.
Operating cash flow improves significantlyJ2 GLOBAL has generated cash of $192.54 million from operating activities during the nine month period, up 29.59 percent or $43.97 million, when compared with the last year period. The company has spent $41.69 million cash to meet investing activities during the nine month period as against cash outgo of $263.32 million in the last year period.
The company has spent $118.65 million cash to carry out financing activities during the nine month period as against cash outgo of $42.99 million in the last year period.
Cash and cash equivalents stood at $285.56 million as on Sep. 30, 2016, up 4.84 percent or $13.19 million from $272.37 million on Sep. 30, 2015.
Working capital declines
J2 GLOBAL has witnessed a decline in the working capital over the last year. It stood at $286.13 million as at Sep. 30, 2016, down 14.40 percent or $48.12 million from $334.25 million on Sep. 30, 2015. Current ratio was at 2.59 as on Sep. 30, 2016, down from 3.02 on Sep. 30, 2015.
Days sales outstanding went down to 44 days for the quarter compared with 48 days for the same period last year.
Debt remains almost stableTotal debt of J2 GLOBAL remained almost stable for the quarter at $599.46 million, when compared with the last year period. Total debt was 33.88 percent of total assets as on Sep. 30, 2016, compared with 33.97 percent on Sep. 30, 2015. Debt to equity ratio was at 0.67 as on Sep. 30, 2016, down from 0.69 as on Sep. 30, 2015. 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
