Revenue during the quarter went down marginally by 0.33 percent to $128.09 million from $128.51 million in the previous year period. Gross margin for the quarter expanded 476 basis points over the previous year period to 81.23 percent. Total expenses were 85.36 percent of quarterly revenues, down from 88.47 percent for the same period last year. This has led to an improvement of 311 basis points in operating margin to 14.64 percent.

Operating income for the quarter was $18.76 million, compared with $14.82 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $32.25 million compared with $31.06 million in the prior year period. At the same time, adjusted EBITDA margin improved 101 basis points in the quarter to 25.18 percent from 24.17 percent in the last year period.

"2016 was a year of solid growth in total revenue, operating income and adjusted EPS. Adjusted EBITDA also increased, overall profitability and margins improved, operating cash flow remained strong and we acquired a care management platform - which was our first step in building out a new vertical to complement our historically strong cost containment product suite," said Bill Lucia, chairman and chief executive officer. "We enter the new year with momentum as fourth quarter health plan revenue of $64.3 million was the second consecutive record quarterly total, though not quite enough to meet our full-year growth target. Additionally, sales which closed during the second half of 2016 and will become revenue generating over the next few months; the run rate benefit of business implemented throughout last year; ongoing product yield improvement initiatives; and a robust pipeline of potential sales we expect to close in the early part of this year each contribute to our view of expected 2017 growth. As a result, we are projecting a high teens increase in year-over-year health plan revenue," Lucia concluded.

For the financial year 2017, HMS Holdings Corp projects revenue to grow in the range of 7 percent to 9 percent.

The company has spent $39.20 million cash to meet investing activities during the year as against cash outgo of $11.82 million in the last year.

The company has spent $19.05 million cash to carry out financing activities during the year as against cash outgo of $47.97 million in the last year period.

Cash and cash equivalents stood at $176 million as on Dec. 31, 2016, up 20.87 percent or $30.39 million from $145.61 million on Dec. 31, 2015.

Debt remains stable
Total debt remained stable at $197.80 million as on Dec. 31, 2016, when compared with the last year. Long-term debt remained stable at $197.80 million as on Dec. 31, 2016, when compared with the last year. Total debt was 22.41 percent of total assets as on Dec. 31, 2016, compared with 23.05 percent on Dec. 31, 2015. Debt to equity ratio was at 0.36 as on Dec. 31, 2016, down from 0.38 as on Dec. 31, 2015. Interest coverage ratio improved to 8.50 for the quarter from 7.52 for the same period last year.