Ari Network Services (ARIS) has reported 218.08 percent jump in profit for the quarter ended Apr. 30, 2017. The company has earned $1.42 million, or $0.08 a share in the quarter, compared with $0.45 million, or $0.03 a share for the same period last year.

Revenue during the quarter grew 12.02 percent to $13.42 million from $11.98 million in the previous year period. Gross margin for the quarter expanded 2 basis points over the previous year period to 80.54 percent. Total expenses were 88.92 percent of quarterly revenues, down from 92.31 percent for the same period last year. This has led to an improvement of 339 basis points in operating margin to 11.08 percent.

Operating income for the quarter was $1.49 million, compared with $0.92 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $3.03 million compared with $2.18 million in the prior year period. At the same time, adjusted EBITDA margin improved 436 basis points in the quarter to 22.54 percent from 18.18 percent in the last year period.

"Our third quarter results exceeded our expectations and place us well on the path to achieving our goals for fiscal 2017," said Roy W. Olivier, president and chief executive officer of ARI. "We had strong bookings in the quarter which were aided by a large business management software sale, and although churn runs seasonally high in Q3, we were able to post a year over year improvement for the fourth consecutive quarter. On a trailing twelve-month basis, we have now recorded over $51 million in revenue and approximately $9.5 million in adjusted EBITDA. As we head into the fourth quarter of our fiscal 2017, we are well positioned to improve on those numbers and report another record year for ARI."

The company has spent $13.08 million cash to meet investing activities during the nine month period as against cash outgo of $2.37 million in the last year period.

Cash flow from financing activities was $6.50 million for the nine month period as against cash outgo of $1.01 million in the last year period.

Cash and cash equivalents stood at $5.56 million as on Apr. 30, 2017, up 25.11 percent or $1.11 million from $4.44 million on Apr. 30, 2016.

Working capital remains negative
Working capital of Ari Network Services was negative $1.33 million on Apr. 30, 2017 compared with negative $1.95 million on Apr. 30, 2016. Current ratio was at 0.91 as on Apr. 30, 2017, up from 0.85 on Apr. 30, 2016.

Cash conversion cycle (CCC) has increased to 6 days for the quarter from 1 days for the last year period. Days sales outstanding were almost stable at 17 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 3 days for the quarter compared with 7 days for the previous year period. At the same time, days payable outstanding went up to 26 days for the quarter from 25 for the same period last year.