Pegasystems Inc. (PEGA) has reported a 61.77 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $2.42 million, or $0.03 a share in the quarter, compared with $6.32 million, or $0.08 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $13.06 million, or $0.17 a share compared with $13.25 million or $0.17 a share, a year ago.
Revenue during the quarter grew 12.56 percent to $182.80 million from $162.40 million in the previous year period. Gross margin for the quarter expanded 108 basis points over the previous year period to 66.94 percent. Total expenses were 96.99 percent of quarterly revenues, up from 93.40 percent for the same period last year. That has resulted in a contraction of 359 basis points in operating margin to 3.01 percent.
Operating income for the quarter was $5.50 million, compared with $10.71 million in the previous year period.
However, the adjusted operating income for the quarter stood at $20.66 million compared to $21.78 million in the prior year period. At the same time, adjusted operating margin contracted 211 basis points in the quarter to 11.30 percent from 13.41 percent in the last year period.
"We're pleased with our Q3 and year-to-date results," said Alan Trefler, founder and chief executive officer, Pegasystems. "We continue to focus on delivering the industry's leading BPM and CRM applications to provide clients with dramatic business agility and positive business outcomes. We are delighted to see a growing number of leading organizations choosing our software to improve customer engagement and drive operational excellence."
Operating cash flow drops significantly
Pegasystems Inc. has generated cash of $17.40 million from operating activities during the nine month period, down 68.33 percent or $37.53 million, when compared with the last year period.
The company has spent $2.86 million cash to meet investing activities during the nine month period as against cash outgo of $42.74 million in the last year period.
The company has spent $39.87 million cash to carry out financing activities during the nine month period as against cash outgo of $25.66 million in the last year period.
Cash and cash equivalents stood at $66.38 million as on Sep. 30, 2016, down 31.76 percent or $30.90 million from $97.28 million on Sep. 30, 2015.
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