EPAM Systems, Inc. (EPAM) has reported 14.43 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $26.17 million, or $0.49 a share in the quarter, compared with $22.87 million, or $0.44 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $40.76 million, or $0.76 a share compared with $33.59 million or $0.64 a share, a year ago. Revenue during the quarter grew 26.37 percent to $298.29 million from $236.05 million in the previous year period. Gross margin for the quarter contracted 106 basis points over the previous year period to 36.04 percent. Total expenses were 88.63 percent of quarterly revenues, up from 88.23 percent for the same period last year. That has resulted in a contraction of 40 basis points in operating margin to 11.37 percent.
Operating income for the quarter was $33.90 million, compared with $27.78 million in the previous year period.
However, the adjusted operating income for the quarter stood at $49.72 million compared to $41.46 million in the prior year period. At the same time, adjusted operating margin contracted 89 basis points in the quarter to 16.67 percent from 17.56 percent in the last year period.
"It is with a mix of gratitude and sadness that I announce that Anthony Conte, the Companys Senior Vice president, Chief Financial Officer and Treasurer has notified the Company that he plans to step down in the third quarter of 2017 in order to pursue personal and other business interests,” said Arkadiy Dobkin, chairman, chief executive officer president , EPAM. "Over his 10-year career with EPAM, Anthonys financial and business leadership has been a key part of EPAM’s growth and success. The Company will conduct a search to find a successor. Anthony will participate in selection of his successor and assist with the transition."
For the fourth-quarter, Epam Systems forecasts revenue to be $310 million. Epam Systems forecasts revenue to be $1,156 million for fiscal year 2016. The company expects diluted earnings per share to be $0.54 for the fourth-quarter. For fiscal year 2016, the company expects diluted earnings per share to be $1.94. On an adjusted basis, the company projects diluted earnings per share to be $0.78 for the fourth-quarter. For fiscal year 2016, the company projects diluted earnings per share to be $2.90 on adjusted basis.
Working capital increases sharplyEPAM Systems, Inc. has recorded an increase in the working capital over the last year. It stood at $513.29 million as at Sep. 30, 2016, up 32.40 percent or $125.60 million from $387.69 million on Sep. 30, 2015. Current ratio was at 5.19 as on Sep. 30, 2016, up from 4.45 on Sep. 30, 2015. Days sales outstanding went down to 49 days for the quarter compared with 90 days for the same period last year.
At the same time, days payable outstanding went down to 4 days for the quarter from 7 for the same period last year.
Debt increases substantially
EPAM Systems, Inc. Systems has witnessed an increase in total debt over the last one year. It stood at $33.06 million as on Sep. 30, 2016, up 120.41 percent or $18.06 million from $15 million on Sep. 30, 2015. Epam Systems has witnessed an increase in long-term debt over the last one year. Total debt was 3.64 percent of total assets as on Sep. 30, 2016, compared with 2.13 percent on Sep. 30, 2015. Debt to equity ratio was at 0.04 as on Sep. 30, 2016, up from 0.03 as on Sep. 30, 2015. 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
