West Corporation (WSTC) has reported 21.41 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $54.10 million, or $0.63 a share in the quarter, compared with $44.56 million, or $0.53 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $68.77 million, or $0.81 a share compared with $63.55 million or $0.75 a share, a year ago. Revenue during the quarter went up marginally by 0.31 percent to $572.54 million from $570.78 million in the previous year period. Gross margin for the quarter contracted 12 basis points over the previous year period to 57.66 percent. Total expenses were 81.10 percent of quarterly revenues, up from 80.92 percent for the same period last year. That has resulted in a contraction of 18 basis points in operating margin to 18.90 percent.
Operating income for the quarter was $108.22 million, compared with $108.92 million in the previous year period.
However, the adjusted operating income for the quarter stood at $129.27 million compared to $134.10 million in the prior year period. At the same time, adjusted operating margin contracted 92 basis points in the quarter to 22.58 percent from 23.49 percent in the last year period.
“Our first quarter revenue was slightly below our expectations, primarily due to changes in product mix and a decrease in the average rate per minute for automated conferencing services negatively impacting revenue in the Unified Communications Services segment,” said Tom Barker, chairman and chief executive officer. “West Corporation continued to grow its Safety Services, Interactive Services and Specialized Agent Services segments in the first quarter, as the Company won new clients, experienced increased volumes and saw further adoption of new technologies.”
Working capital increases
West Corporation has recorded an increase in the working capital over the last year. It stood at $243.42 million as at Mar. 31, 2017, up 5.27 percent or $12.18 million from $231.23 million on Mar. 31, 2016. Current ratio was at 1.51 as on Mar. 31, 2017, up from 1.48 on Mar. 31, 2016. Days sales outstanding were almost stable at 62 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went down to 32 days for the quarter from 35 for the same period last year.
Debt comes down marginally
West Corporation has recorded a decline in total debt over the last one year. It stood at $3,155.79 million as on Mar. 31, 2017, down 4.86 percent or $161.15 million from $3,316.94 million on Mar. 31, 2016. Total debt was 91.31 percent of total assets as on Mar. 31, 2017, compared with 94.16 percent on Mar. 31, 2016. 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]
