CSG Systems International, Inc (CSGS) has reported a 6.85 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $17.89 million, or $0.55 a share in the quarter, compared with $16.75 million, or $0.50 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $24.47 million, or $0.75 a share compared with $24.06 million or $0.72 a share, a year ago.
Revenue during the quarter went up marginally by 1.26 percent to $189.31 million from $186.96 million in the previous year period. Gross margin for the quarter contracted 4 basis points over the previous year period to 50.65 percent. Total expenses were 80.67 percent of quarterly revenues, down from 83.41 percent for the same period last year. This has led to an improvement of 274 basis points in operating margin to 19.33 percent.
Operating income for the quarter was $36.60 million, compared with $31.02 million in the previous year period.
However, the adjusted operating income for the quarter stood at $43.89 million compared to $40.30 million in the prior year period. At the same time, adjusted operating margin improved 163 basis points in the quarter to 23.19 percent from 21.56 percent in the last year period.
"I am really pleased with how we are executing in a challenging environment," said Bret Griess, president and chief executive officer for CSG International. "We continue to move market share off of competitors’ solutions and onto our cloud-based platforms. We are expanding our reach into the broadband and cable space internationally with our recent win at Cablevision Argentina, and we are strengthening and expanding our relationships with carriers around the globe with our managed services offerings. Our successful execution on our strategy drives profitable revenue growth and long-term shareholder value."
For financial year 2016, CSG Systems International, Inc expects revenue to be in the range of $755 million to $760 million. The company forecasts net income to be in the range of $63.50 million to $67.20 million and adjusted net income to be in the range of $92.10 million to $95.50 million. It company forecasts operating income to be $135.70 million. The company projects diluted earnings per share to be in the range of $1.92 to $2.03 and diluted earnings per share to be in the range of $2.79 to $2.89 on adjusted basis.
Operating cash flow drops significantly
CSG Systems International, Inc has generated cash of $59.51 million from operating activities during the nine month period, down 29.45 percent or $24.84 million, when compared with the last year period. The company has spent $23.65 million cash to meet investing activities during the nine month period as against cash outgo of $3.81 million in the last year period.
The company has spent $33.06 million cash to carry out financing activities during the nine month period as against cash outgo of $57.68 million in the last year period.
Cash and cash equivalents stood at $140.22 million as on Sep. 30, 2016, up 39.99 percent or $40.06 million from $100.16 million on Sep. 30, 2015.
Working capital increases
CSG Systems International, Inc has recorded an increase in the working capital over the last year. It stood at $306.40 million as at Sep. 30, 2016, up 8.16 percent or $23.12 million from $283.28 million on Sep. 30, 2015. Current ratio was at 2.32 as on Sep. 30, 2016, down from 2.49 on Sep. 30, 2015.
Days sales outstanding were almost stable at 114 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went down to 28 days for the quarter from 35 for the same period last year.
Debt increases substantially
CSG Systems International, Inc has witnessed an increase in total debt over the last one year. It stood at $376.70 million as on Sep. 30, 2016, up 32.25 percent or $91.86 million from $284.84 million on Sep. 30, 2015. Total debt was 43.39 percent of total assets as on Sep. 30, 2016, compared with 33.88 percent on Sep. 30, 2015. Debt to equity ratio was at 1.49 as on Sep. 30, 2016, up from 0.85 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 8.32 for the quarter from 12.28 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
