MAM Software Group, Inc (MAMS) has reported 46.14 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $1.21 million, or $0.10 a share in the quarter, compared with $0.83 million, or $0.06 a share for the same period last year.
Revenue during the quarter went up marginally by 0.84 percent to $8.06 million from $8 million in the previous year period. Gross margin for the quarter expanded 530 basis points over the previous year period to 58.84 percent. Total expenses were 83.04 percent of quarterly revenues, down from 87.19 percent for the same period last year. This has led to an improvement of 415 basis points in operating margin to 16.96 percent.
Operating income for the quarter was $1.37 million, compared with $1.02 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.58 million compared with $1.22 million in the prior year period. At the same time, adjusted EBITDA margin improved 435 basis points in the quarter to 19.59 percent from 15.23 percent in the last year period.
Michael Jamieson, MAM’s President and Chief Executive Officer, commented, “The new perpetual software license deals we were recently awarded by multiple North American customers drove an increase in our revenues and profitability during the first quarter. Clearly, the investments in product we made during fiscal 2016 are proving to be beneficial to our commercial market performance. While the improvement in revenues and profitability in the first quarter is encouraging, our plans for additional investments for support staff and in R&D in fiscal 2017 remain intact, as does our outlook for the full fiscal year. These investments and the successful completion of our 2017 key initiatives, we believe, will position us for double-digit growth in revenue and profitability beginning in fiscal 2018.”
Operating cash flow improves significantly
MAM Software Group, Inc has generated cash of $1.41 million from operating activities during the quarter, up 130.02 percent or $0.80 million, when compared with the last year period. The company has spent $0.77 million cash to meet investing activities during the quarter as against cash outgo of $1.10 million in the last year period.
The company has spent $0.55 million cash to carry out financing activities during the quarter as against cash outgo of $0.16 million in the last year period.
Cash and cash equivalents stood at $0.33 million as on Sep. 30, 2016, down 94.28 percent or $5.49 million from $5.82 million on Sep. 30, 2015.
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