FactSet Research Systems (FDS) has reported a 2.05 percent fall in profit for the quarter ended May 31, 2017. The company has earned $65.41 million, or $1.66 a share in the quarter, compared with $66.78 million, or $1.62 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $72.95 million, or $1.85 a share compared with $67.54 million or $1.64 a share, a year ago.

Revenue during the quarter grew 8.56 percent to $312.12 million from $287.50 million in the previous year period. Gross margin for the quarter contracted 357 basis points over the previous year period to 53.09 percent. Total expenses were 71.92 percent of quarterly revenues, up from 68.94 percent for the same period last year. That has resulted in a contraction of 298 basis points in operating margin to 28.08 percent.

Operating income for the quarter was $87.64 million, compared with $89.29 million in the previous year period.

However, the adjusted operating income for the quarter stood at $100.33 million compared to $94.77 million in the prior year period. At the same time, adjusted operating margin contracted 82 basis points in the quarter to 32.15 percent from 32.96 percent in the last year period.

"We are making significant progress in integrating our recent acquisitions for building end-to-end solutions across key workflows in the portfolio lifecycle which are critical to our success. As we look ahead, we have a solid strategy to capitalize on the market trends and deepen our client relationships. While there are challenges in the market, we remain confident about executing on our growth strategy," said Phil Snow, FactSet chief executive officer.

For financial year 2017, FactSet Research Systems forecasts revenue to be in the range of $321 million to $328 million. The company forecasts operating income to grow in the range of 28 percent to 29 percent. The company forecasts adjusted operating income to grow in the range of 31 percent to 32 percent. The company expects diluted earnings per share to be in the range of $1.67 to $1.73. The company expects diluted earnings per share to be in the range of $1.86 to $1.92 on adjusted basis.

FactSet Research Systems has generated cash of $220.31 million from operating activities during the nine month period, down 15.62 percent or $40.79 million, when compared with the last year period.

The company has spent $334.41 million cash to meet investing activities during the nine month period as against cash outgo of $299.27 million in the last year period.

Cash flow from financing activities was $51.41 million for the nine month period, down 26.87 percent or $18.89 million, when compared with the last year period.

Cash and cash equivalents stood at $161.76 million as on May 31, 2017, down 13.70 percent or $25.68 million from $187.44 million on May 31, 2016.