Perficient, Inc. (PRFT) has reported a 49.89 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $2.71 million, or $0.08 a share in the quarter, compared with $5.41 million, or $0.16 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $8.09 million, or $0.24 a share compared with $9.98 million or $0.29 a share, a year ago.
Revenue during the quarter dropped 10.36 percent to $111.02 million from $123.84 million in the previous year period. Gross margin for the quarter expanded 1 basis points over the previous year period to 32.49 percent. Total expenses were 95.62 percent of quarterly revenues, up from 93.16 percent for the same period last year. That has resulted in a contraction of 246 basis points in operating margin to 4.38 percent.
Operating income for the quarter was $4.86 million, compared with $8.47 million in the previous year period.
"We expect solid year-to-date bookings, coupled with a strong pipeline, to drive accelerating momentum in the second quarter and second half of 2017," said Jeffrey Davis, chief executive officer and president. "That business strength, coupled with several precise and prescriptive strategic internal initiatives underway, will drive meaningful margin expansion in the quarters ahead."
For the second-quarter, Perficient, Inc. expects revenue to be in the range of $111 million to $123.50 million. The company projects diluted earnings per share to be in the range of $0.15 to $0.18. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.29 to $0.31.
For financial year 2017, Perficient, Inc. expects revenue to be in the range of $485 million to $515 million. The company projects diluted earnings per share to be in the range of $0.60 to $0.75 and projects diluted earnings per share to be in the range of $1.17 to $1.31 on adjusted basis.
Working capital declines
Perficient, Inc. has witnessed a decline in the working capital over the last year. It stood at $76.24 million as at Mar. 31, 2017, down 18.23 percent or $16.99 million from $93.23 million on Mar. 31, 2016. Current ratio was at 3.31 as on Mar. 31, 2017, up from 3.23 on Mar. 31, 2016.
Days sales outstanding went down to 84 days for the quarter compared with 87 days for the same period last year.
At the same time, days payable outstanding was almost stable at 17 days for the quarter, when compared with the previous year period.
Debt comes down significantly
Perficient, Inc. has recorded a decline in total debt over the last one year. It stood at $38.50 million as on Mar. 31, 2017, down 31.25 percent or $17.50 million from $56 million on Mar. 31, 2016. Perficient, Inc. has recorded a decline in long-term debt over the last one year. It stood at $38.50 million as on Mar. 31, 2017, down 31.25 percent or $17.50 million from $56 million on Mar. 31, 2016. Total debt was 8.55 percent of total assets as on Mar. 31, 2017, compared with 11.99 percent on Mar. 31, 2016. Debt to equity ratio was at 0.11 as on Mar. 31, 2017, down from 0.16 as on Mar. 31, 2016.
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