ACI Worldwide, Inc. (ACIW) has reported a 52.38 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $66.69 million, or $0.56 a share in the quarter, compared with $43.77 million, or $0.36 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $67.78 million, or $0.57 a share compared with $47.62 million or $0.40 a share, a year ago.
Revenue during the quarter grew 11.05 percent to $342.73 million from $308.64 million in the previous year period. Gross margin for the quarter expanded 560 basis points over the previous year period to 67.66 percent. Total expenses were 64.89 percent of quarterly revenues, down from 76.03 percent for the same period last year. This has led to an improvement of 1115 basis points in operating margin to 35.11 percent.
Operating income for the quarter was $120.34 million, compared with $73.97 million in the previous year period.
However, the adjusted operating income for the quarter stood at $122.09 million compared to $79.89 million in the prior year period. At the same time, adjusted operating margin improved 974 basis points in the quarter to 35.62 percent from 25.89 percent in the last year period.
"We delivered our strongest revenue growth of the year in Q4 and set another bookings record. We signed three new UP BASE24-eps deals, one new UP Immediate Payments deal and our largest ever Universal Payments contract," commented Phil Heasley, president and chief executive officer, ACI Worldwide. "Entering 2017, we are signing some of the largest contracts in our history and we are very optimistic about ACI's growing opportunity in the rapidly changing payments landscape."
For financial year 2017, ACI Worldwide, Inc. expects revenue to be in the range of $1,000 million to $1,025 million.
For the first-quarter, ACI Worldwide, Inc. expects revenue to be in the range of $215 million to $220 million.
Operating cash flow drops significantly
ACI Worldwide, Inc. has generated cash of $99.83 million from operating activities during the year, down 46.90 percent or $88.16 million, when compared with the last year.
Cash flow from investing activities was $129.63 million from investing activities during the year as against cash outgo of $199.96 million in the last year.
The company has spent $251.08 million cash to carry out financing activities during the year as against cash inflow of $44.64 million in the last year period.
Cash and cash equivalents stood at $75.75 million as on Dec. 31, 2016, down 25.91 percent or $26.49 million from $102.24 million on Dec. 31, 2015.
Working capital turns positive
Working capital of ACI Worldwide, Inc. has turned positive to $31.62 million on Dec. 31, 2016 from negative $2.36 million on Dec. 31, 2015. Current ratio was at 1.08 as on Dec. 31, 2016, up from 0.99 on Dec. 31, 2015.
Debt comes down
ACI Worldwide, Inc. has recorded a decline in total debt over the last one year. It stood at $743.92 million as on Dec. 31, 2016, down 19.50 percent or $180.24 million from $924.16 million on Dec. 31, 2015. Total debt was 39.11 percent of total assets as on Dec. 31, 2016, compared with 46.44 percent on Dec. 31, 2015. Debt to equity ratio was at 0.99 as on Dec. 31, 2016, down from 1.41 as on Dec. 31, 2015. Interest coverage ratio improved to 11.78 for the quarter from 7.25 for the same period last year.
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