Nci (NCIT) has reported 68.96 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $1.10 million, or $0.08 a share in the quarter, compared with $3.55 million, or $0.26 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $3.20 million, or $0.23 a share compared with $4.25 million or $0.31 a share, a year ago.
Revenue during the quarter dropped 7.81 percent to $77.46 million from $84.02 million in the previous year period. Gross margin for the quarter expanded 55 basis points over the previous year period to 17.92 percent. Total expenses were 96.35 percent of quarterly revenues, up from 93.37 percent for the same period last year. That has resulted in a contraction of 299 basis points in operating margin to 3.65 percent.
Operating income for the quarter was $2.82 million, compared with $5.57 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $7.45 million compared with $8.59 million in the prior year period. At the same time, adjusted EBITDA margin contracted 61 basis points in the quarter to 9.62 percent from 10.22 percent in the last year period.
"First, I want to thank the board of directors for the opportunity to lead NCI. When I accepted their offer to become NCI’s president and chief executive officer, I saw the ingredients of a truly outstanding company. I saw a company that has a strong win rate on its recompeted contracts, meaningful and enduring customer relationships driven by dedicated, responsive employees, and an impressive portfolio of IDIQ and GWAC contracts. Perhaps most important, I saw a company with an outstanding pedigree of technical expertise, including differentiated agile software development and lean O&M capabilities," said Paul A. Dillahay, NCI’s president and chief executive officer.
For the first-quarter, Nci expects revenue to be in the range of $74 million to $80 million. The company projects diluted earnings per share to be in the range of $0.21 to $0.23.
For financial year 2017, Nci expects revenue to be in the range of $311 million to $335 million. The company projects diluted earnings per share to be in the range of $0.84 to $0.98.
Operating cash flow drops significantlyNci has generated cash of $16.37 million from operating activities during the year, down 33.01 percent or $8.07 million, when compared with the last year. The company has spent $3.01 million cash to meet investing activities during the year as against cash outgo of $59.33 million in the last year.
The company has spent $12.58 million cash to carry out financing activities during the year as against cash inflow of $9.30 million in the last year period.
Cash and cash equivalents stood at $1.01 million as on Dec. 31, 2016, up 335.19 percent or $0.78 million from $0.23 million on Dec. 31, 2015.
Working capital declines
Nci has witnessed a decline in the working capital over the last year. It stood at $17.65 million as at Dec. 31, 2016, down 23.35 percent or $5.38 million from $23.03 million on Dec. 31, 2015. Current ratio was at 1.46 as on Dec. 31, 2016, down from 1.51 on Dec. 31, 2015.
Days sales outstanding went down to 30 days for the quarter compared with 33 days for the same period last year.
At the same time, days payable outstanding went down to 7 days for the quarter from 13 for the same period last year.
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