Intuit Inc. (INTU) saw its loss narrow to $30 million, or $0.12 a share for the quarter ended Oct. 31, 2016. In the previous year period, the company reported a loss of $31 million, or $0.11 a share. On the other hand, adjusted net income for the quarter stood at $15 million, or $0.06 a share compared with $24 million or $0.09 a share, a year ago.
Revenue during the quarter grew 9.12 percent to $778 million from $713 million in the previous year period. Gross margin for the quarter contracted 70 basis points over the previous year period to 76.86 percent. Operating margin for the quarter stood at negative 7.84 percent as compared to a negative 4.07 percent for the previous year period.
Operating loss for the quarter was $61 million, compared with an operating loss of $29 million in the previous year period.
However, the adjusted operating income for the quarter stood at $32 million compared to $46 million in the prior year period. At the same time, adjusted operating margin contracted 234 basis points in the quarter to 4.11 percent from 6.45 percent in the last year period.
"We are off to a strong start to the fiscal year with QuickBooks Online continuing to build momentum as we pursue large global market opportunities," said Brad Smith, Intuit’s chairman and chief executive officer. "Customer growth is expanding globally in Canada, the U.K., and Australia, and QuickBooks Self-Employed is contributing to category growth worldwide.
For fiscal year 2017, Intuit Inc. projects revenue to be in the range of $5,000 million to $5,100 million. The company projects operating income to be in the range of $1,330 million to $1,380 million and projects adjusted operating income to be in the range of $1,675 million to $1,725 million. It forecasts diluted earnings per share to be in the range of $3.47 to $3.57 and forecasts diluted earnings per share to be in the range of $4.30 to $4.40 on adjusted basis.
For the second-quarter, Intuit Inc. projects revenue to be in the range of $1,045 million to $1,065 million. The company projects operating income to be in the range of $60 million to $70 million. The company projects adjusted operating income to be in the range of $142 million to $152 million. It forecasts diluted earnings per share to be in the range of $0.12 to $0.15. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.33 to $0.36.
Operating cash flow remains negative
Intuit Inc. has spent $205 million cash to meet operating activities during the quarter as against cash outgo of $188 million in the last year period.
Cash flow from investing activities was $98 million for the quarter, down 87.99 percent or $718 million, when compared with the last year period.
The company has spent $166 million cash to carry out financing activities during the quarter as against cash outgo of $961 million in the last year period.
Cash and cash equivalents stood at stood at $360 million as at Oct. 31, 2016.
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