Imperva, Inc. (IMPV) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $23.08 million, or $ 0.68 a share in the quarter, against a net loss of $24.01 million, or $0.75 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $2.96 million, or $0.09 a share compared with a net loss of $8 million, or $0.25 a share in the last year period. Revenue during the quarter grew 20.97 percent to $72.31 million from $59.77 million in the previous year period. Gross margin for the quarter expanded 102 basis points over the previous year period to 79.32 percent. Operating margin for the quarter stood at negative 16.23 percent as compared to a negative 40.47 percent for the previous year period.
Operating loss for the quarter was $11.74 million, compared with an operating loss of $24.19 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $3.10 million compared to operating loss of $8.18 million in prior year period.
"Our first quarter results exceeded our guidance, and were primarily driven by the ongoing demand of our best of breed application security and data security platform," stated Anthony Bettencourt, president and chief executive officer of Imperva. "During the quarter, we were particularly pleased with our ability to generate record free cash flow, as well as improved profitability highlighting our continued commitment to growth, operational efficiency and cost controls. Looking forward, the underlying strength of Imperva's technology positions the company to gain market share globally."
For the fiscal year 2017, Imperva, Inc. expects revenue to be in the range of $319.80 million to $322.80 million. It projects adjusted net income to be in the range of $14.50 million to $16.10 million. It expects adjusted operating income to be in the range of $21.60 million to $23.20 million. It projects diluted earnings per share to be in the range of $0.42 to $0.47 on adjusted basis for the same period.
For the second-quarter, Imperva, Inc. expects revenue to be in the range of $73 million to $75 million. It projects adjusted net income to be in the range of $1.40 million to $2 million. It expects adjusted operating income to be in the range of $2 million to $2.60 million. It projects diluted earnings per share to be in the range of $0.04 to $0.06 on an adjusted basis for the same period.
Operating cash flow improves significantly
Imperva, Inc. has generated cash of $18.50 million from operating activities during the quarter, up 209.19 percent or $12.51 million, when compared with the last year period. Cash flow from investing activities was $10.44 million for the quarter as against cash outgo of $6.79 million in the last year period.
The company has spent $0.61 million cash to carry out financing activities during the quarter as against cash outgo of $8.92 million in the last year period.
Cash and cash equivalents stood at $136.32 million as on Mar. 31, 2017, down 14.10 percent or $22.37 million from $158.69 million on Mar. 31, 2016.
Working capital increases
Imperva, Inc. has recorded an increase in the working capital over the last year. It stood at $234.09 million as at Mar. 31, 2017, up 17.53 percent or $34.92 million from $199.17 million on Mar. 31, 2016. Current ratio was at 2.73 as on Mar. 31, 2017, down from 2.75 on Mar. 31, 2016.
Cash conversion cycle (CCC) was almost stable at 35 days for the quarter, when compared with the last year period. Days sales outstanding went down to 66 days for the quarter compared with 80 days for the same period last year.
Days inventory outstanding has decreased to 1 days for the quarter compared with 6 days for the previous year period. At the same time, days payable outstanding went down to 33 days for the quarter from 51 for the same period last year.
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