Insight Enterprises, Inc (NSIT) has reported a 13.59 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $21.10 million, or $0.59 a share in the quarter, compared with $18.58 million, or $0.50 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $26 million, or $0.72 a share compared with $21.39 million or $0.57 a share, a year ago. Revenue during the quarter grew 5.80 percent to $1,467.58 million from $1,387.18 million in the previous year period. Gross margin for the quarter contracted 2 basis points over the previous year period to 13.01 percent. Total expenses were 97.23 percent of quarterly revenues, down from 97.80 percent for the same period last year. This has led to an improvement of 57 basis points in operating margin to 2.77 percent.
Operating income for the quarter was $40.67 million, compared with $30.55 million in the previous year period.
However, the adjusted operating income for the quarter stood at $45.90 million compared to $33.54 million in the prior year period. At the same time, adjusted operating margin improved 71 basis points in the quarter to 3.13 percent from 2.42 percent in the last year period.
"Our fourth quarter top-line results reflect solid sales execution in our core business as well as the validation of our strategy to expand our value-added services offerings globally, as evidenced by the double-digit organic growth reported in this important category," stated Ken Lamneck, president and chief executive officer. "With the acquisition of Ignia in the third quarter of 2016 and Datalink in January of 2017, our portfolio of offerings for 2017 is stronger than ever, with deep technical and consulting capabilities around data center, hybrid Cloud, application development and workforce enablement," stated Lamneck.
For fiscal year 2017, Insight Enterprises, Inc expects diluted earnings per share to be in the range of $2.80 to $2.90 on adjusted basis.
Operating cash flow drops significantly
Insight Enterprises, Inc has generated cash of $95.80 million from operating activities during the year, down 46.93 percent or $84.70 million, when compared with the last year. The company has spent $21.18 million cash to meet investing activities during the year as against cash outgo of $57.64 million in the last year.
The company has spent $57.91 million cash to carry out financing activities during the year as against cash outgo of $82.74 million in the last year period.
Cash and cash equivalents stood at $202.88 million as on Dec. 31, 2016, up 7.93 percent or $14.90 million from $187.98 million on Dec. 31, 2015.
Working capital remains almost stable
Working capital of Insight Enterprises, Inc remained almost stable for the quarter at $544.94 million, when compared with the previous year period. Current ratio was at 1.38 as on Dec. 31, 2016, down from 1.45 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 9 days for the quarter from 12 days for the last year period. Days sales outstanding went up to 45 days for the quarter compared with 44 days for the same period last year.
Days inventory outstanding has increased to 8 days for the quarter compared with 7 days for the previous year period. At the same time, days payable outstanding went up to 44 days for the quarter from 39 for the same period last year.
Debt comes down significantly
Insight Enterprises, Inc has recorded a decline in total debt over the last one year. It stood at $40.73 million as on Dec. 31, 2016, down 55.01 percent or $49.80 million from $90.54 million on Dec. 31, 2015. Total debt was 1.84 percent of total assets as on Dec. 31, 2016, compared with 4.50 percent on Dec. 31, 2015. Debt to equity ratio was at 0.06 as on Dec. 31, 2016, down from 0.13 as on Dec. 31, 2015. Interest coverage ratio improved to 17.91 for the quarter from 17.91 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
