BroadSoft, Inc. (BSFT) has reported 49.88 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $5.83 million, or $0.18 a share in the quarter, compared with $11.62 million, or $0.39 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $28.70 million, or $0.91 a share compared with $30.69 million or $1.04 a share, a year ago.
Revenue during the quarter grew 13.83 percent to $101.98 million from $89.59 million in the previous year period. Gross margin for the quarter contracted 144 basis points over the previous year period to 76.39 percent. Total expenses were 86.46 percent of quarterly revenues, up from 76.98 percent for the same period last year. That has resulted in a contraction of 948 basis points in operating margin to 13.54 percent.
Operating income for the quarter was $13.81 million, compared with $20.62 million in the previous year period.
However, the adjusted operating income for the quarter stood at $28.66 million compared to $32.13 million in the prior year period. At the same time, adjusted operating margin contracted 777 basis points in the quarter to 28.10 percent from 35.87 percent in the last year period.
"We are very pleased with our performance in 2016 as we successfully executed against our strategic and financial objectives for the year. We worked closely with several of our major service provider partners as they launched significant new service offerings based on our platform. In addition, we made a big leap forward in product innovation with the introduction of our BroadSoft Business suite of applications," said Michael Tessler, president and chief executive officer, BroadSoft.
For the first-quarter, Broadsoft projects revenue to be in the range of $78 million to $82 million. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.10 to $0.20.
For financial year 2017, Broadsoft projects revenue to be in the range of $390 million to $400 million. The company forecasts diluted earnings per share to be in the range of $2.20 to $2.50 on adjusted basis.
Operating cash flow improves significantly
BroadSoft, Inc. has generated cash of $67.10 million from operating activities during the year, up 49.82 percent or $22.31 million, when compared with the last year.
The company has spent $156.09 million cash to meet investing activities during the year as against cash outgo of $88.01 million in the last year.
The company has spent $2.47 million cash to carry out financing activities during the year as against cash inflow of $118.92 million in the last year period.
Working capital decreases marginally
BroadSoft, Inc. has witnessed a decline in the working capital over the last year. It stood at $227.78 million as at Dec. 31, 2016, down 2.87 percent or $6.73 million from $234.51 million on Dec. 31, 2015. Current ratio was at 2.74 as on Dec. 31, 2016, up from 2.74 on Dec. 31, 2015.
Days sales outstanding were almost stable at 55 days for the quarter, when compared with the last year period.
Debt moves up
BroadSoft, Inc. has witnessed an increase in total debt over the last one year. It stood at $201.02 million as on Dec. 31, 2016, up 6.73 percent or $12.68 million from $188.33 million on Dec. 31, 2015. Broadsoft has witnessed an increase in long-term debt over the last one year. It stood at $201.02 million as on Dec. 31, 2016, up 6.73 percent or $12.68 million from $188.33 million on Dec. 31, 2015. Total debt was 30.87 percent of total assets as on Dec. 31, 2016, compared with 31.79 percent on Dec. 31, 2015. Debt to equity ratio was at 0.67 as on Dec. 31, 2016, down from 0.73 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 3.44 for the quarter from 5.44 for the same period last year.
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