ACI Worldwide Inc. (ACIW) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $1.61 million, or $ 0.01 a share in the quarter, against a net profit of $89.14 million, or $0.74 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $2.40 million, or $0.02 a share compared with a net loss of $1.91 million, or $0.01 a share in the last year period.
Revenue during the quarter went up marginally by 2.39 percent to $231.46 million from $226.07 million in the previous year period. Gross margin for the quarter expanded 549 basis points over the previous year period to 53.11 percent. Total expenses were 98.43 percent of quarterly revenues, up from 39.53 percent for the same period last year. That has resulted in a contraction of 5891 basis points in operating margin to 1.57 percent.
Operating income for the quarter was $3.62 million, compared with $136.71 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $9.69 million compared to operating loss of $11.20 million in prior year period.
"We had a solid start to 2017. We signed several important contracts in the quarter, including an Immediate Payments deal with Jack Henry. Q1 revenue grew 10% and Adjusted EBITDA increased 68% year over year. Our cash flow also increased significantly in the quarter," commented Phil Heasley, president and chief executive officer, ACI Worldwide. "Following a successful investor day in March as well as several customer-focused events, we remain excited about the growth opportunities for Universal Payments in the electronic 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 second-quarter, ACI Worldwide Inc. expects revenue to be in the range of $225 million to $230 million.
Operating cash flow improves significantly
ACI Worldwide Inc. has generated cash of $85.69 million from operating activities during the quarter, up 122.43 percent or $47.16 million, when compared with the last year period.
The company has spent $12.40 million cash to meet investing activities during the quarter as against cash inflow of $177.10 million in the last year period.
The company has spent $48.87 million cash to carry out financing activities during the quarter as against cash outgo of $224.61 million in the last year period.
Cash and cash equivalents stood at $99.74 million as on Mar. 31, 2017, up 5.70 percent or $5.38 million from $94.37 million on Mar. 31, 2016.
Working capital turns positive
Working capital of ACI Worldwide Inc. has turned positive to $76.30 million on Mar. 31, 2017 from negative $50.90 million on Mar. 31, 2016. Current ratio was at 1.29 as on Mar. 31, 2017, up from 0.86 on Mar. 31, 2016.
Days sales outstanding were almost stable at 82 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 38 days for the quarter from 36 for the same period last year.
Debt comes down
ACI Worldwide Inc. has recorded a decline in total debt over the last one year. It stood at $696.83 million as on Mar. 31, 2017, down 8.18 percent or $62.08 million from $758.91 million on Mar. 31, 2016. Total debt was 38.06 percent of total assets as on Mar. 31, 2017, compared with 41.37 percent on Mar. 31, 2016. Debt to equity ratio was at 0.90 as on Mar. 31, 2017, down from 1.08 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.36 for the quarter from 13.13 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: editor@irisindia.net
