IntraLinks Holdings, Inc. (IL) saw its loss narrow to $1.23 million, or $0.02 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $6.56 million, or $0.11 a share. On an adjusted basis, net profit for the quarter was $5.22 million, when compared with $1.81 million in the last year period.
Revenue during the quarter grew 8.37 percent to $75.41 million from $69.59 million in the previous year period. Gross margin for the quarter expanded 201 basis points over the previous year period to 74.27 percent. Operating margin for the quarter period stood at positive 0.85 percent as compared to a negative 6.79 percent for the previous year period.
Operating income for the quarter was $0.64 million, compared with an operating loss of $4.72 million in the previous year period.
However, the adjusted operating income for the quarter stood at $9.60 million compared to $4.33 million in the prior year period. At the same time, adjusted operating margin improved 650 basis points in the quarter to 12.72 percent from 6.22 percent in the last year period.
"Our results this quarter reflect our focus on expanding profit margins and cash flow," said Ron Hovsepian, Intralinks’ president and chief executive officer. "The initiatives we are taking resulted in a significant improvement in our non-GAAP operating margin which was 13% for the quarter, the highest in nearly five years. The improvement in our profitability also contributed to our significantly higher free cash flow during the third quarter. We are well positioned to continue to grow our business at double digit rates and further improve profitability in the fourth quarter, and into 2017 and beyond."
For the fourth-quarter, IntraLinks Holdings forecasts revenue to be in the range of $78.90 million to $80.90 million. The company forecasts operating income to be in the range of $0.40 million to $1.40 million. The company forecasts adjusted operating income to be in the range of $9.30 million to $10.30 million. The company expects diluted loss per share to be in the range of negative $0.04 to $0.01. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.08 to $0.09.
For fiscal year 2016, IntraLinks Holdings forecasts revenue to be in the range of $298 million to $300 million, the company forecasts operating loss to be in the range of $7.40 million to $6.40 million. The company forecasts adjusted operating income to be in the range of $28 million to $29 million. It expects diluted loss per share to be in the range of $0.27 to $0.25. The company expects diluted earnings per share to be in the range of $0.24 to $0.26 on adjusted basis.
Operating cash flow improvesIntraLinks Holdings has generated cash of $27.06 million from operating activities during the nine month period, up 22.15 percent or $4.91 million, when compared with the last year period. The company has spent $14.47 million cash to meet investing activities during the nine month period as against cash outgo of $23.43 million in the last year period.
The company has spent $13.02 million cash to carry out financing activities during the nine month period as against cash inflow of $1.29 million in the last year period.
Cash and cash equivalents stood at $47.86 million as on Sep. 30, 2016, up 21.37 percent or $8.43 million from $39.44 million on Sep. 30, 2015.
Working capital drops significantly
IntraLinks Holdings has witnessed a decline in the working capital over the last year. It stood at $23.41 million as at Sep. 30, 2016, down 27.92 percent or $9.07 million from $32.48 million on Sep. 30, 2015. Current ratio was at 1.26 as on Sep. 30, 2016, down from 1.34 on Sep. 30, 2015.
Days sales outstanding went down to 65 days for the quarter compared with 70 days for the same period last year.
At the same time, days payable outstanding went down to 41 days for the quarter from 61 for the same period last year.
Debt moves up marginallyIntraLinks Holdings has witnessed an increase in total debt over the last one year. It stood at $80.04 million as on Sep. 30, 2016, up 2.28 percent or $1.79 million from $78.25 million on Sep. 30, 2015. Total debt was 18.28 percent of total assets as on Sep. 30, 2016, compared with 16.71 percent on Sep. 30, 2015. Debt to equity ratio was at 0.30 as on Sep. 30, 2016, up from 0.27 as on Sep. 30, 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
