Evolving Systems, Inc (EVOL) has reported 127.87 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $0.97 million, or $0.08 a share in the quarter, compared with $0.43 million, or $0.04 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1.15 million, or $0.10 a share compared with $1.25 million or $0.10 a share, a year ago. Revenue during the quarter dropped 9.34 percent to $5.88 million from $6.48 million in the previous year period. Gross margin for the quarter contracted 394 basis points over the previous year period to 73.70 percent. Total expenses were 73.31 percent of quarterly revenues, down from 92.07 percent for the same period last year. This has led to an improvement of 1876 basis points in operating margin to 26.69 percent.
Operating income for the quarter was $1.57 million, compared with $0.51 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.90 million compared with $1.80 million in the prior year period. At the same time, adjusted EBITDA margin improved 443 basis points in the quarter to 32.27 percent from 27.84 percent in the last year period.
Thomas Thekkethala, Chief Executive Officer of Evolving Systems, said, “We are pleased to announce the acquisition of BLS, a long-standing provider of digital customer engagement and customer value management expertise to wireless operators in emerging markets. The team, technologies and solutions at BLS will dovetail nicely with our Managed Services model and we consequently expect a speedy integration that should serve to strengthen our managed service offerings. The acquisition will also expand our global customer footprint through BLS’ long-standing relationships with a number of mobile operator groups. We expect this asset-purchase deal to close toward the end of the second quarter with the completion of transfer of customers and employees to Evolving Systems.
Working capital increases
Evolving Systems, Inc has recorded an increase in the working capital over the last year. It stood at $8.96 million as at Mar. 31, 2017, up 7.33 percent or $0.61 million from $8.34 million on Mar. 31, 2016. Current ratio was at 1.90 as on Mar. 31, 2017, up from 1.79 on Mar. 31, 2016. Days sales outstanding went down to 95 days for the quarter compared with 115 days for the same period last year.
Debt comes down
Evolving Systems, Inc has recorded a decline in total debt over the last one year. It stood at $5.48 million as on Mar. 31, 2017, down 8.43 percent or $0.50 million from $5.99 million on Mar. 31, 2016. Total debt was 12.40 percent of total assets as on Mar. 31, 2017, compared with 12.79 percent on Mar. 31, 2016. Debt to equity ratio was at 0.18 as on Mar. 31, 2017, down from 0.19 as on Mar. 31, 2016. Interest coverage ratio improved to 21.48 for the quarter from 4.36 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
