Issuer Direct Corporation (ISDR) has reported 34.13 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.32 million, or $0.11 a share in the quarter, compared with $0.49 million, or $0.17 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $0.41 million, or $0.14 a share compared with $0.52 million or $0.18 a share, a year ago. Revenue during the quarter dropped 12.85 percent to $2.86 million from $3.28 million in the previous year period. Gross margin for the quarter contracted 263 basis points over the previous year period to 73.88 percent. Total expenses were 86.88 percent of quarterly revenues, up from 78.94 percent for the same period last year. That has resulted in a contraction of 794 basis points in operating margin to 13.12 percent.
Operating income for the quarter was $0.37 million, compared with $0.69 million in the previous year period.
Brian Balbirnie, chief executive officer of Issuer Direct, commented, "Overall, we are pleased with the continued strong performance of our high margin, recurring, Platform and Technology revenue, up 50% year over year and 19% sequentially. Our Platform and Technology products now account for 49% of our overall revenue, an increase compared to 43% of total revenue in Q4 2016 and just 29% of total revenue in Q1 2016. Our near-term target is to reach or exceed 50% revenue contribution from Platform and Technology for 2017, and for that percentage to be significantly greater in 2018."
Operating cash flow improves significantlyIssuer Direct Corporation has generated cash of $0.65 million from operating activities during the quarter, up 29.01 percent or $0.15 million, when compared with the last year period. The company has spent $0.29 million cash to meet investing activities during the quarter as against cash outgo of $0.38 million in the last year period.
The company has spent $0.12 million cash to carry out financing activities during the quarter as against cash outgo of $0.08 million in the last year period.
Cash and cash equivalents stood at $5.59 million as on Mar. 31, 2017, up 30.69 percent or $1.31 million from $4.28 million on Mar. 31, 2016.
Working capital increases sharply
Issuer Direct Corporation has recorded an increase in the working capital over the last year. It stood at $4.94 million as at Mar. 31, 2017, up 26.19 percent or $1.03 million from $3.92 million on Mar. 31, 2016. Current ratio was at 3.23 as on Mar. 31, 2017, up from 2.85 on Mar. 31, 2016.
Days sales outstanding went up to 40 days for the quarter compared with 38 days for the same period last year.
At the same time, days payable outstanding went down to 42 days for the quarter from 55 for the same period last year.
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