CardConnect Corp. (CCN) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $1.57 million, or $ 0.09 a share in the quarter, against a net profit of $0.92 million, or $0.05 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $1.53 million, or $0.05 a share compared with $2.93 million or $0.09 a share, a year ago.
Revenue during the quarter grew 20.49 percent to $156.65 million from $130.01 million in the previous year period. Gross margin for the quarter contracted 56 basis points over the previous year period to 10.36 percent. Total expenses were 99.52 percent of quarterly revenues, up from 98.87 percent for the same period last year. That has resulted in a contraction of 65 basis points in operating margin to 0.48 percent.
Operating income for the quarter was $0.76 million, compared with $1.47 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $7.61 million compared with $7.74 million in the prior year period. At the same time, adjusted EBITDA margin contracted 110 basis points in the quarter to 4.86 percent from 5.95 percent in the last year period.
"Fiscal 2017 is off to a strong start. Most importantly, organic bankcard volume grew a record 22.8% in the first quarter of 2017 compared to the prior year quarter," said CardConnect president and chief executive officer Jeff Shanahan. "Volume growth was again primarily driven by our unique value proposition in the integrated payments market where we offer software partners a unified payments platform delivered with best in class payment security. As part of our 2017 strategy to invest for future growth, early in the second quarter, we acquired MertzCo, Inc., who was our largest value-added reseller. We are thrilled to have someone with Michael Mertz’s track record of success leading our sales. Additionally, we are executing on our organic growth plan, both in sales and technology. We are also providing updated guidance for 2017 as a result of the MertzCo transaction."
For fiscal year 2017, CardConnect Corp. forecasts revenue to be in the range of $686 million to $700 million. It forecasts adjusted revenue to be in the range of $182 million to $185 million for the same period.
Operating cash flow improves significantly
CardConnect Corp. has generated cash of $10.30 million from operating activities during the quarter, up 88.31 percent or $4.83 million, when compared with the last year period.
The company has spent $8.01 million cash to meet investing activities during the quarter as against cash outgo of $3.20 million in the last year period.
The company has spent $0.21 million cash to carry out financing activities during the quarter as against cash outgo of $1.58 million in the last year period.
Cash and cash equivalents stood at $11.46 million as on Mar. 31, 2017, up 168.80 percent or $7.20 million from $4.26 million on Mar. 31, 2016.
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