Verisign (VRSN) has reported an 8.33 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $116.41 million, or $0.94 a share in the quarter, compared with $107.46 million, or $0.82 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $118.91 million, or $0.96 a share compared with $112.26 million or $0.85 a share, a year ago.
Revenue during the quarter went up marginally by 2.39 percent to $288.61 million from $281.88 million in the previous year period. Gross margin for the quarter expanded 39 basis points over the previous year period to 82.44 percent. Total expenses were 39.27 percent of quarterly revenues, down from 40.84 percent for the same period last year. This has led to an improvement of 157 basis points in operating margin to 60.73 percent.
Operating income for the quarter was $175.27 million, compared with $166.77 million in the previous year period.
However, the adjusted operating income for the quarter stood at $187.83 million compared to $178.53 million in the prior year period. At the same time, adjusted operating margin improved 175 basis points in the quarter to 65.08 percent from 63.33 percent in the last year period.
"I'm pleased with the first quarter results and the consistency of our teams in generating growth and delivering long-term value for our stockholders," said Jim Bidzos, executive chairman, president and chief executive officer.
Operating cash flow remains almost stable Verisign has generated cash of $148.19 million from operating activities during the quarter, down 0.97 percent or $ 1.46 million, when compared with the last year period.
Cash flow from investing activities was $238.77 million for the quarter, up 1,112.24 percent or $219.08 million, when compared with the last year period.
Cash flow from financing activities was almost stable for the quarter at $165.05 million, when compared with the previous year period.
Cash and cash equivalents stood at $454.59 million as on Mar. 31, 2017, up 94.25 percent or $220.57 million from $234.02 million on Mar. 31, 2016.
Working capital drops significantly
Verisign has witnessed a decline in the working capital over the last year. It stood at $317.84 million as at Mar. 31, 2017, down 31.55 percent or $146.51 million from $464.34 million on Mar. 31, 2016. Current ratio was at 1.21 as on Mar. 31, 2017, down from 1.31 on Mar. 31, 2016.
Days sales outstanding went down to 2 days for the quarter compared with 5 days for the same period last year.
Debt remains almost stable
Total debt of Verisign remained almost stable for the quarter at $1,863.54 million, when compared with the last year period. Total debt was 80.48 percent of total assets as on Mar. 31, 2017, compared with 80.27 percent on Mar. 31, 2016. Interest coverage ratio improved to 6.04 for the quarter from 5.79 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]
