Monotype Imaging Holdings (TYPE) has reported 90.81 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $0.45 million, or $0.01 a share in the quarter, compared with $4.90 million, or $0.12 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $4.82 million, or $0.12 a share compared with $11.99 million or $0.30 a share, a year ago. Revenue during the quarter grew 3.99 percent to $52.64 million from $50.62 million in the previous year period. Gross margin for the quarter contracted 16 basis points over the previous year period to 81.86 percent. Total expenses were 97.61 percent of quarterly revenues, up from 80.39 percent for the same period last year. That has resulted in a contraction of 1723 basis points in operating margin to 2.39 percent.
Operating income for the quarter was $1.26 million, compared with $9.93 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $10.62 million compared with $20.75 million in the prior year period. At the same time, adjusted EBITDA margin contracted 2081 basis points in the quarter to 20.18 percent from 40.99 percent in the last year period.
"Continued strong performance in our Creative Professional business helped push full year results over the $200 million mark for the first time in our history,” said Scott Landers, president and chief executive officer of Monotype. "2016 was a transformational year for Monotype, where we saw the emergence of new digital use cases, such as HTML5-based digital advertising, as well as significantly expanded opportunities in new markets with the acquisition of Olapic. We believe there is a substantial opportunity ahead for Monotype to provide comprehensive value to brands, and we are well positioned to take advantage of it."
For the first-quarter, Monotype Imaging Holdings forecasts revenue to be in the range of $51.50 million to $55.50 million. Monotype Imaging Holdings forecasts revenue to be in the range of $229 million to $237 million for fiscal year 2017. For financial year 2017, Monotype Imaging Holdings projects net income to be in the range of $1.40 million to $4.70 million. Monotype Imaging Holdings expects adjusted net income to be in the range of $3.70 million to $5.10 million for the first-quarter. For the financial year 2017, Monotype Imaging Holdings expects adjusted net income to be in the range of $21.80 million to $25.10 million. The company expects diluted loss per share to be in the range of negative $0.03 to $0.01 for the first-quarter. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $0.04 to $0.12. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.09 to $0.13 for the first-quarter. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $0.54 to $0.62 on adjusted basis.
Working capital increases marginallyMonotype Imaging Holdings has recorded an increase in the working capital over the last year. It stood at $77.10 million as at Dec. 31, 2016, up 4.44 percent or $3.28 million from $73.82 million on Dec. 31, 2015. Current ratio was at 2.59 as on Dec. 31, 2016, down from 3.09 on Dec. 31, 2015. Days sales outstanding went up to 26 days for the quarter compared with 16 days for the same period last year.
At the same time, days payable outstanding went up to 10 days for the quarter from 7 for the same period last year.
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