Microstrategy (MSTR) has reported 4.17 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $14.87 million, or $1.28 a share in the quarter, compared with $14.27 million, or $1.24 a share for the same period last year. Revenue during the quarter went up marginally by 1.31 percent to $120.58 million from $119.02 million in the previous year period. Gross margin for the quarter contracted 1 basis points over the previous year period to 80.82 percent. Total expenses were 83.95 percent of quarterly revenues, up from 83.37 percent for the same period last year. That has resulted in a contraction of 58 basis points in operating margin to 16.05 percent.
Operating income for the quarter was $19.35 million, compared with $19.80 million in the previous year period.
However, the adjusted operating income for the quarter stood at $22.47 million compared to $21.32 million in the prior year period. At the same time, adjusted operating margin improved 71 basis points in the quarter to 18.63 percent from 17.92 percent in the last year period.
Gary Quirke, Chief Executive Officer of QueBIT stated, “QueBIT is delighted to have entered into a business partnership with MicroStrategy. We have admired the MicroStrategy enterprise software platform for many years and believe that MicroStrategy’s vision for next-generation mobile analytics sets them apart in an increasingly disruptive marketplace. We believe technologies like Usher™ will be game-changing for our customers as we enter the era of the third platform and the Internet of Things.”
Operating cash flow drops significantly
Microstrategy has generated cash of $26.52 million from operating activities during the quarter, down 47.82 percent or $ 24.31 million, when compared with the last year period. The company has spent $73.10 million cash to meet investing activities during the quarter as against cash outgo of $34.11 million in the last year period.
Cash flow from financing activities was $1.09 million for the quarter as against cash outgo of $2.35 million in the last year period.
Cash and cash equivalents stood at $358.68 million as on Mar. 31, 2017, up 15.86 percent or $49.09 million from $309.59 million on Mar. 31, 2016.
Working capital increases sharply
Microstrategy has recorded an increase in the working capital over the last year. It stood at $518.50 million as at Mar. 31, 2017, up 25.78 percent or $106.26 million from $412.24 million on Mar. 31, 2016. Current ratio was at 3.79 as on Mar. 31, 2017, up from 3.10 on Mar. 31, 2016.
Days sales outstanding went up to 53 days for the quarter compared with 48 days for the same period last year.
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