NIC Inc (EGOV) has reported 8.46 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $13.98 million, or $0.21 a share in the quarter, compared with $12.89 million, or $0.19 a share for the same period last year. Revenue during the quarter grew 6.11 percent to $83.18 million from $78.39 million in the previous year period. Gross margin for the quarter contracted 91 basis points over the previous year period to 43.46 percent. Total expenses were 74.62 percent of quarterly revenues, up from 74.03 percent for the same period last year. That has resulted in a contraction of 59 basis points in operating margin to 25.38 percent.
Operating income for the quarter was $21.11 million, compared with $20.36 million in the previous year period.
“I am pleased with our solid financial results for the quarter,” said Harry Herington, NIC’s Chief Executive Officer and Chairman of the Board. “Our teams across the country remain laser-focused on our mission to bring new innovative solutions to our government partners, which continue to deliver more efficiencies to citizens and businesses.”
Operating cash flow drops significantly
NIC Inc has generated cash of $4.94 million from operating activities during the quarter, down 52.27 percent or $ 5.40 million, when compared with the last year period. The company has spent $1.80 million cash to meet investing activities during the quarter as against cash outgo of $2.03 million in the last year period. It has incurred net capital expenditure of $0.92 million on net basis during the quarter, down 37.76 percent or $0.56 million from year ago period.
The company has spent $6.59 million cash to carry out financing activities during the quarter as against cash outgo of $0.92 million in the last year period.
Cash and cash equivalents stood at $123.56 million as on Mar. 31, 2017, up 16.81 percent or $17.78 million from $105.78 million on Mar. 31, 2016.
Working capital increases
NIC Inc has recorded an increase in the working capital over the last year. It stood at $133.48 million as at Mar. 31, 2017, up 10.32 percent or $12.48 million from $121 million on Mar. 31, 2016. Current ratio was at 2.54 as on Mar. 31, 2017, down from 2.55 on Mar. 31, 2016.
Days sales outstanding went down to 89 days for the quarter compared with 93 days for the same period last year.
At the same time, days payable outstanding went down to 119 days for the quarter from 124 for the same period last year.
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