Pc Connection (PCCC) has reported 4.55 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $13.59 million, or $0.51 a share in the quarter, compared with $13 million, or $0.49 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $14.41 million, or $0.54 a share compared with $13.28 million or $0.50 a share, a year ago.
Revenue during the quarter grew 4.07 percent to $708.48 million from $680.77 million in the previous year period. Gross margin for the quarter expanded 68 basis points over the previous year period to 13.69 percent. Total expenses were 96.83 percent of quarterly revenues, up from 96.79 percent for the same period last year. That has resulted in a contraction of 4 basis points in operating margin to 3.17 percent.
Operating income for the quarter was $22.44 million, compared with $21.86 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $26.53 million compared with $24.80 million in the prior year period. At the same time, adjusted EBITDA margin improved 10 basis points in the quarter to 3.74 percent from 3.64 percent in the last year period.
“In September we launched our new brand name, Connection, and changed our ticker symbol to CNXN. The brand name reflects our mission to help connect people with technology in new and innovative ways," said Timothy McGrath, president and chief executive officer. "Connection will unite all of our subsidiaries together into one cohesive brand that reflects the successes of our past and the promise of our future."
Operating cash flow improves significantlyPc Connection has generated cash of $39.78 million from operating activities during the nine month period, up 57.21 percent or $14.48 million, when compared with the last year period. The company has spent $42.73 million cash to meet investing activities during the nine month period as against cash outgo of $10.07 million in the last year period.
The company has spent $10.36 million cash to carry out financing activities during the nine month period as against cash inflow of $0.72 million in the last year period.
Cash and cash equivalents stood at $66.88 million as on Sep. 30, 2016, down 12.99 percent or $9.98 million from $76.87 million on Sep. 30, 2015.
Working capital increases marginally
Pc Connection has recorded an increase in the working capital over the last year. It stood at $329.80 million as at Sep. 30, 2016, up 1.79 percent or $5.79 million from $324.01 million on Sep. 30, 2015. Current ratio was at 2.63 as on Sep. 30, 2016, up from 2.62 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 29 days for the quarter from 36 days for the last year period. Days sales outstanding were almost stable at 45 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 8 days for the quarter compared with 16 days for the previous year period. At the same time, days payable outstanding was almost stable at 24 days for the quarter, when compared with the previous year period.
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