Revenue during the quarter went up marginally by 0.75 percent to $155.63 million from $154.47 million in the previous year period. Gross margin for the quarter expanded 205 basis points over the previous year period to 51.95 percent. Total expenses were 79.32 percent of quarterly revenues, down from 79.79 percent for the same period last year. This has led to an improvement of 47 basis points in operating margin to 20.68 percent.

Operating income for the quarter was $32.18 million, compared with $31.22 million in the previous year period.

"We are off to a good financial start for fiscal 2017 and have been very focused on driving a number of initiatives," said Serge Belamant, chairman and chief executive officer of Net1. "We believe that our recent reorganization, which focuses certain executives on specific tasks, our acquisition strategy that grows and diversifies our international revenue base and also provides us access to new and skilled management teams, our diversification efforts in South Africa that will reduce concentration risk and increase the group's revenue and profitability, and our cooperation with Blue Label, should result in meaningful earnings growth, which in turn should enhance shareholder value," he concluded.

The company has spent $55.72 million cash to meet investing activities during the quarter as against cash outgo of $33.85 million in the last year period. It has incurred net capital expenditure of $3.35 million on net basis during the quarter, down 67.59 percent or $7 million from year ago period.

The company has spent $21.66 million cash to carry out financing activities during the quarter as against cash inflow of $27.98 million in the last year period.

Cash and cash equivalents stood at $205.33 million as on Sep. 30, 2016, up 63.47 percent or $79.72 million from $125.61 million on Sep. 30, 2015.

Working capital increases
Net 1 UEPS Technologies, Inc. has recorded an increase in the working capital over the last year. It stood at $290.13 million as at Sep. 30, 2016, up 17.08 percent or $42.32 million from $247.81 million on Sep. 30, 2015. Current ratio was at 1.43 as on Sep. 30, 2016, up from 1.36 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 85 days for the quarter from 106 days for the last year period. Days sales outstanding went down to 101 days for the quarter compared with 113 days for the same period last year.

Days inventory outstanding has decreased to 7 days for the quarter compared with 15 days for the previous year period. At the same time, days payable outstanding was almost stable at 22 days for the quarter, when compared with the previous year period.