Scansource (SCSC) has reported 11.52 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $12.42 million, or $0.49 a share in the quarter, compared with $14.04 million, or $0.54 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $16.39 million, or $0.65 a share compared with $16.52 million or $0.64 a share, a year ago.
Revenue during the quarter went up marginally by 1.90 percent to $813.54 million from $798.40 million in the previous year period. Gross margin for the quarter expanded 81 basis points over the previous year period to 11.39 percent. Total expenses were 97.54 percent of quarterly revenues, up from 97.29 percent for the same period last year. That has resulted in a contraction of 26 basis points in operating margin to 2.46 percent.
Operating income for the quarter was $19.98 million, compared with $21.65 million in the previous year period.
However, the adjusted operating income for the quarter stood at $26.16 million compared to $25.32 million in the prior year period. At the same time, adjusted operating margin improved 4 basis points in the quarter to 3.21 percent from 3.17 percent in the last year period.
"We are pleased to report both net sales and EPS within our forecast range, and our Worldwide Barcode, Networking and Security segment delivered 4% sales growth," said Mike Baur, chief executive officer, ScanSource, Inc. "We executed well on our key opportunities for growth, including the Intelisys telecommunications and cloud services business."
For financial year 2017, the company projects diluted earnings per share to be in the range of $0.44 to $0.51. The company projects diluted earnings per share to be in the range of $0.64 to $0.71 on adjusted basis.
Working capital declinesScansource has witnessed a decline in the working capital over the last year. It stood at $616.13 million as at Mar. 31, 2017, down 6.16 percent or $40.47 million from $656.60 million on Mar. 31, 2016. Current ratio was at 2.05 as on Mar. 31, 2017, down from 2.20 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 37 days for the quarter from 78 days for the last year period. Days sales outstanding were almost stable at 64 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 32 days for the quarter compared with 75 days for the previous year period. At the same time, days payable outstanding was almost stable at 59 days for the quarter, when compared with the previous year period.
Debt increases substantiallyScansource has witnessed an increase in total debt over the last one year. It stood at $113.93 million as on Mar. 31, 2017, up 42.70 percent or $34.09 million from $79.84 million on Mar. 31, 2016. Total debt was 6.98 percent of total assets as on Mar. 31, 2017, compared with 5.55 percent on Mar. 31, 2016. Debt to equity ratio was at 0.14 as on Mar. 31, 2017, up from 0.11 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 25.61 for the quarter from 31.19 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
