Qualys, Inc. (QLYS) has reported an 8.90 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $5.91 million, or $0.15 a share in the quarter, compared with $5.42 million, or $0.14 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $8.78 million, or $0.23 a share compared with $7.84 million or $0.21 a share, a year ago.
Revenue during the quarter grew 17.50 percent to $52.22 million from $44.44 million in the previous year period. Gross margin for the quarter contracted 211 basis points over the previous year period to 77.64 percent. Total expenses were 83.13 percent of quarterly revenues, up from 82.68 percent for the same period last year. That has resulted in a contraction of 44 basis points in operating margin to 16.87 percent.
Operating income for the quarter was $8.81 million, compared with $7.70 million in the previous year period.
However, the adjusted operating income for the quarter stood at $13.84 million compared to $12.51 million in the prior year period. At the same time, adjusted operating margin contracted 165 basis points in the quarter to 26.50 percent from 28.15 percent in the last year period.
"Fourth quarter 2016 was a solid finish to our strong fiscal year during which we increased revenues by 20%, maintained industry-leading margins, and deployed 2 million paid Cloud Agents. Throughout 2016, we continued to expand our cloud platform capabilities with new offerings and strategic partnerships that make us more strategic to customers, positioning Qualys for continued profitable growth," said Philippe Courtot, chairman and chief executive officer, Qualys, Inc. "The security industry is seeing a rapid transformation from legacy point products to integrated and automated capabilities that seamlessly work together as a platform."
For fiscal year 2017, Qualys, Inc. forecasts revenue to be in the range of $224 million to $228 million. The company expects diluted earnings per share to be in the range of $1 to $1.06 and expects diluted earnings per share to be in the range of $0.81 to $0.86 on adjusted basis.
For the first-quarter 2017, Qualys, Inc. forecasts revenue to be in the range of $52 million to $53 million. The company expects diluted earnings per share to be in the range of $0.38 to $0.4. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.17 to $0.19.
Operating cash flow improves marginally
Qualys, Inc. has generated cash of $68.11 million from operating activities during the year, up 3.26 percent or $2.15 million, when compared with the last year.
The company has spent $96.49 million cash to meet investing activities during the year as against cash outgo of $61.35 million in the last year.
Cash flow from financing activities was $23.42 million for the year, up 121.31 percent or $12.84 million, when compared with the last year.
Cash and cash equivalents stood at $86.74 million as on Dec. 31, 2016, down 5.41 percent or $4.96 million from $91.70 million on Dec. 31, 2015.
Working capital increases sharply
Qualys, Inc. has recorded an increase in the working capital over the last year. It stood at $170.36 million as at Dec. 31, 2016, up 45.53 percent or $53.30 million from $117.06 million on Dec. 31, 2015. Current ratio was at 2.31 as on Dec. 31, 2016, up from 2.04 on Dec. 31, 2015.
Days sales outstanding went down to 41 days for the quarter compared with 44 days for the same period last year.
At the same time, days payable outstanding went down to 8 days for the quarter from 12 for the same period last year.
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