Asure Software, Inc. (ASUR) saw its loss narrow to $1.06 million, or $0.12 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.55 million, or $0.25 a share. On an adjusted basis, net profit for the quarter stood at $0.80 million, or $0.09 a share compared with a net loss of $0.18 million, or $0.03 a share in the last year period.
Revenue during the quarter surged 59.58 percent to $10.73 million from $6.72 million in the previous year period. Gross margin for the quarter expanded 301 basis points over the previous year period to 77.27 percent. Operating margin for the quarter stood at negative 3.45 percent as compared to a negative 18.28 percent for the previous year period.
Operating loss for the quarter was $0.37 million, compared with an operating loss of $1.23 million in the previous year period.
"Our results for the first quarter were up significantly across the board," said Asure chief executive officer Pat Goepel. "Not only did we experience double-digit year-over-year growth across all our major financial metrics, including revenue, gross margin and EBITDA, but we also increased our cloud revenue as a percentage of total revenue to 73%, which was a significant improvement from the 57% we reported in Q1 2016. But more than just surpassing our previous growth threshold, this improvement is more so reflective of Asure’s continued progress in migrating existing clients to the cloud, which has been a major initiative for us and one, we believe, positions Asure for long-term success."
For fiscal year 2017, Asure Software, Inc. forecasts revenue to be in the range of $45.50 million to $47.50 million. It expects diluted earnings per share to be in the range of $0.62 to $0.77 on adjusted basis for the same period.
Operating cash flow remains negative
Asure Software, Inc. has spent $1.18 million cash to meet operating activities during the quarter as against cash outgo of $0.64 million in the last year period.
The company has spent $6.56 million cash to meet investing activities during the quarter as against cash outgo of $24.20 million in the last year period.
The company has spent $2.70 million cash to carry out financing activities during the quarter as against cash inflow of $24.20 million in the last year period.
Cash and cash equivalents stood at $2.29 million as on Mar. 31, 2017, up 313.74 percent or $1.73 million from $0.55 million on Mar. 31, 2016.
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