Blackbaud (BLKB) has reported a 12.93 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $8.93 million, or $0.19 a share in the quarter, compared with $7.91 million, or $0.17 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $21.35 million, or $0.45 a share compared with $17.67 million or $0.38 a share, a year ago.
Revenue during the quarter grew 15.27 percent to $183.06 million from $158.81 million in the previous year period. Gross margin for the quarter expanded 119 basis points over the previous year period to 54.49 percent. Total expenses were 92.60 percent of quarterly revenues, up from 91.20 percent for the same period last year. That has resulted in a contraction of 140 basis points in operating margin to 7.40 percent.
Operating income for the quarter was $13.54 million, compared with $13.97 million in the previous year period.
However, the adjusted operating income for the quarter stood at $34.05 million compared to $30.59 million in the prior year period. At the same time, adjusted operating margin contracted 66 basis points in the quarter to 18.60 percent from 19.26 percent in the last year period.
"We posted another very solid quarter, with 77.5% of our total revenue now recurring, and non-GAAP organic revenue growth of 8.1%" said Mike Gianoni, Blackbaud's president and chief executive officer. "Our ability to accelerate customer value through innovative new technology is driving our strong financial performance, and will enable us to fuel future growth. We just concluded our annual conference and it's clear that Blackbaud is setting a new technology standard for the social good community."
For fiscal year 2016, Blackbaud expects adjusted revenue to be in the range of $725 million to $740 million. The company expects adjusted operating income to be in the range of $141 million to $147 million. The company projects diluted earnings per share to be in the range of $1.90 to $1.98 on adjusted basis.
Operating cash flow improves
Blackbaud has generated cash of $100.14 million from operating activities during the nine month period, up 11.88 percent or $10.64 million, when compared with the last year period.
The company has spent $37.91 million cash to meet investing activities during the nine month period as against cash outgo of $26.47 million in the last year period.
The company has spent $61.18 million cash to carry out financing activities during the nine month period as against cash outgo of $59 million in the last year period.
Cash and cash equivalents stood at $16.46 million as on Sep. 30, 2016, down 6.23 percent or $1.09 million from $17.56 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Blackbaud was negative $161.85 million on Sep. 30, 2016 compared with negative $144.38 million on Sep. 30, 2015. Current ratio was at 0.64 as on Sep. 30, 2016, up from 0.59 on Sep. 30, 2015.
Days sales outstanding went down to 44 days for the quarter compared with 48 days for the same period last year.
At the same time, days payable outstanding went up to 21 days for the quarter from 19 for the same period last year.
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