Exa Corporation (EXA) swung to a net profit for the quarter ended Oct. 31, 2016. The company has made a net profit of $0.16 million, or $ 0.01 a share in the quarter, against a net loss of $0.43 million, or $0.03 a share in the last year period. On an adjusted basis, net profit for the quarter was $0.56 million, when compared with $0.05 million in the last year period.
Revenue during the quarter grew 12.93 percent to $19.16 million from $16.96 million in the previous year period. Gross margin for the quarter expanded 457 basis points over the previous year period to 74.40 percent. Operating margin for the quarter period stood at positive 3.71 percent as compared to a negative 0.52 percent for the previous year period.
Operating income for the quarter was $0.71 million, compared with an operating loss of $0.09 million in the previous year period.
However, the adjusted operating income for the quarter stood at $1.33 million compared to $0.66 million in the prior year period. At the same time, adjusted operating margin improved 306 basis points in the quarter to 6.95 percent from 3.89 percent in the last year period.
"We continued our momentum in the third quarter and delivered revenue that was in the middle of our guidance range and profitability that was above the high end of our guidance range," said Stephen Remondi, president and chief executive officer of Exa. "With license revenue increasing 14% from a year ago, we continue to drive a shift in mix to higher-margin, recurring license revenue. Strong renewal activity in the quarter sets us up for a healthy finish to fiscal 2017 and start to fiscal 2018. We are pleased to achieve this performance while making important investments that will enable us to further capitalize on our position in the market and continue our growth."
For the fourth-quarter, Exa Corporation expects revenue to be in the range of $19.30 million to $20.90 million. It forecasts net loss to be in the range of $1.20 million to $0.10 million.
For the fiscal year 2017, Exa Corporation expects revenue to be in the range of $72.40 million to $74 million. It forecasts net loss to be in the range of $2.70 million to $1.60 million. The company projects adjusted net loss to be in the range of $1.20 million to $0.10 million, the company expects diluted earnings per share to be $1.06.
Operating cash flow drops significantlyExa Corporation has generated cash of $0.53 million from operating activities during the nine month period, down 86.48 percent or $3.37 million, when compared with the last year period. The company has spent $1.88 million cash to meet investing activities during the nine month period as against cash outgo of $1.40 million in the last year period.
The company has spent $1.70 million cash to carry out financing activities during the nine month period as against cash outgo of $0.96 million in the last year period.
Cash and cash equivalents stood at $25.03 million as on Oct. 31, 2016, up 7.97 percent or $1.85 million from $23.19 million on Oct. 31, 2015.
Working capital decreases marginally
Exa Corporation has witnessed a decline in the working capital over the last year. It stood at $9.18 million as at Oct. 31, 2016, down 4.15 percent or $0.40 million from $9.58 million on Oct. 31, 2015. Current ratio was at 1.26 as on Oct. 31, 2016, down from 1.34 on Oct. 31, 2015.
Days sales outstanding went up to 55 days for the quarter compared with 49 days for the same period last year.
At the same time, days payable outstanding went down to 28 days for the quarter from 36 for the same period last year.
Debt comes down significantlyExa Corporation has recorded a decline in total debt over the last one year. It stood at $3.28 million as on Oct. 31, 2016, down 47.11 percent or $2.92 million from $6.21 million on Oct. 31, 2015. Total debt was 5.59 percent of total assets as on Oct. 31, 2016, compared with 11.86 percent on Oct. 31, 2015. Debt to equity ratio was at 0.18 as on Oct. 31, 2016, down from 0.34 as on Oct. 31, 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
