Computer Programs & Systems (CPSI) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $0.25 million, or $ 0.02 a share in the quarter, against a net loss of $1.66 million, or $0.13 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $3.91 million, or $0.29 a share compared with $7 million or $0.54 a share, a year ago.
Revenue during the quarter dropped 8 percent to $64.08 million from $69.64 million in the previous year period. Gross margin for the quarter expanded 55 basis points over the previous year period to 52.37 percent. Total expenses were 94.95 percent of quarterly revenues, down from 98.89 percent for the same period last year. This has led to an improvement of 393 basis points in operating margin to 5.05 percent.
Operating income for the quarter was $3.23 million, compared with $0.78 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.53 million compared with $13.22 million in the prior year period. At the same time, adjusted EBITDA margin contracted 411 basis points in the quarter to 14.87 percent from 18.98 percent in the last year period.
"Our first quarter of 2017 reflects our continued progress in delivering long-term results," said Boyd Douglas, president and chief executive officer of CPSI. "We feel positive about our bookings again this quarter and the building momentum in our business. Of particular note, in April, we signed the largest contract in Company history. We expect the revenue from this $3.1 million TruBridge contract to be recognized beginning in July of this year."
Operating cash flow improves significantly
Computer Programs & Systems has generated cash of $9.69 million from operating activities during the quarter, up 1,061.51 percent or $8.85 million, when compared with the last year period.
The company has spent $10.02 million cash to carry out financing activities during the quarter as against cash inflow of $138.41 million in the last year period.
Cash and cash equivalents stood at $1.89 million as on Mar. 31, 2017, down 83.85 percent or $9.81 million from $11.69 million on Mar. 31, 2016.
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