Computer Programs & Systems Inc. (CPSI) has reported a 41.03 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $2 million, or $0.15 a share in the quarter, compared with $3.39 million, or $0.30 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $4.73 million, or $0.35 a share compared with $6.24 million or $0.56 a share, a year ago.
Revenue during the quarter surged 45.94 percent to $64.55 million from $44.23 million in the previous year period. Gross margin for the quarter expanded 114 basis points over the previous year period to 52.17 percent. Total expenses were 93.66 percent of quarterly revenues, up from 89.59 percent for the same period last year. That has resulted in a contraction of 407 basis points in operating margin to 6.34 percent.
Operating income for the quarter was $4.09 million, compared with $4.61 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $8.72 million compared with $9.65 million in the prior year period. At the same time, adjusted EBITDA margin contracted 832 basis points in the quarter to 13.50 percent from 21.82 percent in the last year period.
"The fourth quarter of 2016 marks decent progress toward our growth and profitability goals," said Boyd Douglas, president and chief executive officer of CPSI. "The expected escalation in bookings has started to come to fruition with 16 new Thrive hospital system sales in the fourth quarter and with TruBridge and Rycan both reaching their highest quarterly booking levels to date. Considering the headwinds that CPSI and many others in our industry faced over the last 12 months with dissipating government mandates and new competitive dynamics, we believe the level of sales achieved in the fourth quarter is an indication of momentum starting to take shape."
Operating cash flow drops significantly
Computer Programs & Systems Inc. has generated cash of $2.10 million from operating activities during the year, down 93.18 percent or $28.77 million, when compared with the last year.
The company has spent $151.79 million cash to meet investing activities during the year as against cash outgo of $0.60 million in the last year.
Cash flow from financing activities was $126.95 million for the year as against cash outgo of $29.12 million in the last year period.
Cash and cash equivalents stood at $2.22 million as on Dec. 31, 2016, down 91.10 percent or $22.73 million from $24.95 million on Dec. 31, 2015.
Working capital drops significantly
Computer Programs & Systems Inc. has witnessed a decline in the working capital over the last year. It stood at $13.60 million as at Dec. 31, 2016, down 76.19 percent or $43.53 million from $57.14 million on Dec. 31, 2015. Current ratio was at 1.44 as on Dec. 31, 2016, down from 4.28 on Dec. 31, 2015.
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