BroadSoft, Inc. (BSFT) saw its loss widen to $10.54 million, or $0.35 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.51 million, or $0.05 a share. On the other hand, adjusted net income for the quarter stood at $6.19 million, or $0.19 a share compared with $11.07 million or $0.37 a share, a year ago. Revenue during the quarter grew 8.93 percent to $79.67 million from $73.14 million in the previous year period. Gross margin for the quarter contracted 297 basis points over the previous year period to 68.59 percent. Operating margin for the quarter stood at negative 9.54 percent as compared to a negative 0.57 percent for the previous year period.
Operating loss for the quarter was $7.60 million, compared with an operating loss of $0.42 million in the previous year period.
However, the adjusted operating income for the quarter stood at $6.50 million compared to $11.82 million in the prior year period. At the same time, adjusted operating margin contracted 800 basis points in the quarter to 8.15 percent from 16.15 percent in the last year period.
"We were pleased with our solid first quarter results. We made meaningful progress against our 2017 strategic objectives during the quarter. Our goals for this year are focused on making our service provider customers increasingly successful in addressing the cloud communications opportunity through a combination of product, sales and marketing-based initiatives," said Michael Tessler, president and chief executive officer, BroadSoft. “With continued execution against our objectives, we believe that we will remain very well-positioned to take advantage of the secular trend of Unified Communications moving to the cloud."
For financial year 2017, BroadSoft, Inc. expects revenue to be in the range of $380 million to $390 million. The company projects diluted earnings per share to be in the range of $2.20 to $2.50 on adjusted basis.
For the second-quarter 2017, BroadSoft, Inc. expects revenue to be in the range of $84 million to $88 million. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.20 to $0.32.
Operating cash flow remains almost stable
Cash flow from operating activities was almost stable for the quarter at $19.28 million, when compared with the previous year period
The company has spent $7.13 million cash to meet investing activities during the quarter as against cash outgo of $48.08 million in the last year period.
The company has spent $2.73 million cash to carry out financing activities during the quarter as against cash outgo of $1.64 million in the last year period.
Cash and cash equivalents stood at stood at $93.72 million as at Mar. 31, 2017.
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