Revenue during the quarter grew 3.35 percent to $192.47 million from $186.23 million in the previous year period. Gross margin for the quarter contracted 271 basis points over the previous year period to 49.23 percent. Total expenses were 85.97 percent of quarterly revenues, up from 77.83 percent for the same period last year. That has resulted in a contraction of 814 basis points in operating margin to 14.03 percent.

Operating income for the quarter was $27.01 million, compared with $41.29 million in the previous year period.

However, the adjusted operating income for the quarter stood at $34.64 million compared to $44.27 million in the prior year period. At the same time, adjusted operating margin contracted 577 basis points in the quarter to 18 percent from 23.77 percent in the last year period.

“We are off to a good start to the year,” said Bret Griess, chief executive officer and president for CSG International. “We are executing well against our plan, which includes driving top-line revenue growth, expanding our footprint around the world and within our existing clients’ operations, and investing in our people, our products and our clients. We’ve grown our top-line revenues three percent over last year’s first quarter. We’ve doubled the revenues generated from our global managed services offering year-over-year. We’ve added new clients like iFlix, TalkTalk and DISH AirTV to our Ascendon next generation, digital services platform. And, early in April, we converted another 975,000 Comcast customers onto our platform, bringing the total Comcast residential customers converted onto our solutions since mid-2014 to approximately 8 million. I’m pleased with our ability to execute in a challenging and competitive business environment.”

For fiscal year 2017, CSG Systems International, Inc expects revenue to be in the range of $765 million to $785 million. and its net income to be in the range of $64 million to $69 million and adjusted net income to be in the range of $81.10 million to $85.80 million and its operating income to be $112.70 millionand its diluted earnings per share to be in the range of $1.93 to $2.09and its adjusted diluted earnings per share to be in the range of $2.45 to $2.59.

Cash flow from investing activities was $5.88 million for the quarter, down 67.40 percent or $12.16 million, when compared with the last year period.

The company has spent $56.39 million cash to carry out financing activities during the quarter as against cash inflow of $127.06 million in the last year period.

Cash and cash equivalents stood at $107.42 million as on Mar. 31, 2017, down 62.92 percent or $182.31 million from $289.73 million on Mar. 31, 2016.

Working capital declines
CSG Systems International, Inc has witnessed a decline in the working capital over the last year. It stood at $320.24 million as at Mar. 31, 2017, down 7.39 percent or $25.54 million from $345.78 million on Mar. 31, 2016. Current ratio was at 2.60 as on Mar. 31, 2017, up from 2.18 on Mar. 31, 2016.

Days sales outstanding went up to 112 days for the quarter compared with 110 days for the same period last year.

At the same time, days payable outstanding went down to 35 days for the quarter from 37 for the same period last year.