ACI Worldwide (ACIW) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $9.83 million, or $ 0.08 a share in the quarter, against a net profit of $14.78 million, or $0.12 a share in the last year period. Revenue during the quarter dropped 9.10 percent to $216.98 million from $238.70 million in the previous year period. Gross margin for the quarter contracted 27 basis points over the previous year period to 53.79 percent. Operating margin for the quarter stood at negative 4.31 percent as compared to a positive 10.01 percent for the previous year period.
Operating loss for the quarter was $9.35 million, compared with an operating income of $23.89 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $2.48 million compared to operating loss of $28.07 million in prior year period.
“ACI is seeing growing interest in our Universal Payments solution and significant momentum in our SaaS and platform delivery. With success booking net new customers, our new bookings in Q3 grew 9% and our SaaS-specific bookings grew 24%. Also in the quarter we went live with our new state-of-the-art data center in Europe and signed an important partnership with VocaLink,” commented Phil Heasley, President and Chief executive officer, ACI Worldwide. “With our renewal business, we believe our plan to bundle Universal Payments has the potential to double our large customer average contract size with compelling value to both customers and ACI. However, it has caused our renewal negotiations to take longer than they have in the past and is impacting our forecast. This is simply a timing issue and we are making the conscious decision to realize economic value to ACI and our long-term shareholders. Overall, I believe our positioning is as exciting as it ever has been.”
ACI Worldwide projects revenue to be in the range of $960 million to $990 million for financial year 2016.
Working capital turns negative
Working capital of ACI Worldwide has turned negative to $89.46 million on Sep. 30, 2016 from positive $15.55 million on Sep. 30, 2015. Current ratio was at 0.75 as on Sep. 30, 2016, down from 1.04 on Sep. 30, 2015. Days sales outstanding went up to 83 days for the quarter compared with 80 days for the same period last year.
At the same time, days payable outstanding went up to 34 days for the quarter from 31 for the same period last year.
Debt comes down
ACI Worldwide has recorded a decline in total debt over the last one year. It stood at $742.66 million as on Sep. 30, 2016, down 5.32 percent or $41.75 million from $784.41 million on Sep. 30, 2015. Total debt was 41.21 percent of total assets as on Sep. 30, 2016, compared with 44.96 percent on Sep. 30, 2015. Debt to equity ratio was at 1.07 as on Sep. 30, 2016, down from 1.31 as on Sep. 30, 2015. 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
