Ituran Location and Control Ltd (ITRN) has reported an 82.94 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $12.99 million, or $0.62 a share in the quarter, compared with $7.10 million, or $0.34 a share for the same period last year. Revenue during the quarter grew 21 percent to $57.11 million from $47.20 million in the previous year period. Gross margin for the quarter contracted 123 basis points over the previous year period to 49.17 percent. Total expenses were 75.84 percent of quarterly revenues, up from 75.62 percent for the same period last year. That has resulted in a contraction of 23 basis points in operating margin to 24.16 percent.
Operating income for the quarter was $13.80 million, compared with $11.51 million in the previous year period.
Eyal Sheratzky, chief executive officer of Ituran said, "Our first quarter 2017 results represent an excellent start to 2017 with very strong revenue growth, driven primarily by the solid growth in our subscriber base, which has returned to the higher-end of our typical range. Our end-markets in Israel and Brazil continue to demonstrate strength through ongoing demand and interest in our products and solutions."
Operating cash flow drops significantly
Ituran Location and Control Ltd has generated cash of $3.14 million from operating activities during the quarter, down 42.13 percent or $ 2.29 million, when compared with the last year period. The company has spent $4.21 million cash to meet investing activities during the quarter as against cash outgo of $2.30 million in the last year period. It has incurred capital expenditure of $2.69 million on net basis during the quarter, up 26.83 percent or $0.57 million from year ago period.
The company has spent $4.51 million cash to carry out financing activities during the quarter as against cash outgo of $3.89 million in the last year period.
Cash and cash equivalents stood at $26.61 million as on Mar. 31, 2017, down 0.75 percent or $0.20 million from $26.81 million on Mar. 31, 2016.
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