Inteliquent, Inc (IQNT) has reported a 13.38 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $9.37 million, or $0.27 a share in the quarter, compared with $8.27 million, or $0.24 a share for the same period last year. Revenue during the quarter surged 56.01 percent to $99.40 million from $63.72 million in the previous year period. Gross margin for the quarter contracted 1148 basis points over the previous year period to 33.81 percent. Total expenses were 85.44 percent of quarterly revenues, up from 80.11 percent for the same period last year. That has resulted in a contraction of 534 basis points in operating margin to 14.56 percent.
Operating income for the quarter was $14.47 million, compared with $12.68 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $19.08 million compared with $16.91 million in the prior year period. At the same time, adjusted EBITDA margin contracted 734 basis points in the quarter to 19.19 percent from 26.53 percent in the last year period.
"Our third quarter results were a direct reflection of the continued strategic progress and positive momentum we generated over the course of 2016," said Matt Carter, Inteliquent’s president and chief executive officer. "Along with the favorable comparisons to the same period from 2015, we experienced sequential quarterly growth in revenue, billed minutes, and net income. Additionally, during the quarter we made a strategic investment in Zipwhip, a Seattle-based startup that makes it possible for consumers to text businesses on their existing phone numbers. The investment aligns with our focus on extending the power and reliability of our network into the next gen space, and transforming how businesses use communication networks to reach their customers. The recently announced and pending acquisition of Inteliquent by GTCR and Onvoy validates our long term Growth Forward strategy."
Operating cash flow improves
Inteliquent, Inc has generated cash of $49.08 million from operating activities during the nine month period, up 16.63 percent or $7 million, when compared with the last year period. The company has spent $25.55 million cash to meet investing activities during the nine month period as against cash outgo of $20.77 million in the last year period.
The company has spent $12.11 million cash to carry out financing activities during the nine month period as against cash outgo of $13.97 million in the last year period.
Cash and cash equivalents stood at $120.47 million as on Sep. 30, 2016, up 7.49 percent or $8.39 million from $112.08 million on Sep. 30, 2015.
Working capital increases
Inteliquent, Inc has recorded an increase in the working capital over the last year. It stood at $138.88 million as at Sep. 30, 2016, up 6.54 percent or $8.53 million from $130.36 million on Sep. 30, 2015. Current ratio was at 4.43 as on Sep. 30, 2016, down from 5.90 on Sep. 30, 2015.
Days sales outstanding went down to 40 days for the quarter compared with 51 days for the same period last year.
At the same time, days payable outstanding was almost stable at 4 days for the quarter, when compared with the previous year period.
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