Perficient, Inc. (PRFT) has reported a 51.22 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $3.69 million, or $0.11 a share in the quarter, compared with $7.57 million, or $0.22 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $9.27 million, or $0.27 a share compared with $12.72 million or $0.37 a share, a year ago.
Revenue during the quarter dropped 10.52 percent to $119.59 million from $133.65 million in the previous year period. Gross margin for the quarter contracted 243 basis points over the previous year period to 30.37 percent. Total expenses were 94.58 percent of quarterly revenues, up from 91.67 percent for the same period last year. That has resulted in a contraction of 291 basis points in operating margin to 5.42 percent.
Operating income for the quarter was $6.48 million, compared with $11.13 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $15.44 million compared with $19.83 million in the prior year period. At the same time, adjusted EBITDA margin contracted 193 basis points in the quarter to 12.91 percent from 14.84 percent in the last year period.
"2016 was marked by the formal launch of Perficient Digital, increased leverage of our Global Delivery Centers, an investment in expanded sales capacity, growth in many key client relationships and the continued strengthening of our enterprise partnerships with Adobe, IBM, Microsoft, Oracle, and Salesforce," said Jeffrey Davis, chief executive officer and president. "In 2017, we're focused on a comprehensive plan we're confident will drive margin growth, and we're optimistic we'll continue to expand our portfolio and geographic presence through an active and ongoing M&A program."
For the first-quarter 2017, Perficient, Inc. projects revenue to be in the range of $109.70 million to $120.20 million.
For financial year 2017, Perficient, Inc. projects revenue to be in the range of $485 million to $515 million. The company forecasts diluted earnings per share to be in the range of $0.60 to $0.75. It forecasts diluted earnings per share to be in the range of $1.17 to $1.31 on adjusted basis.
Working capital declines
Perficient, Inc. has witnessed a decline in the working capital over the last year. It stood at $76.45 million as at Dec. 31, 2016, down 8.09 percent or $6.73 million from $83.18 million on Dec. 31, 2015. Current ratio was at 2.66 as on Dec. 31, 2016, up from 2.47 on Dec. 31, 2015.
Days sales outstanding went down to 40 days for the quarter compared with 42 days for the same period last year.
At the same time, days payable outstanding was almost stable at 10 days for the quarter, when compared with the previous year period.
Debt comes down significantly
Perficient, Inc. has recorded a decline in total debt over the last one year. It stood at $32 million as on Dec. 31, 2016, down 42.86 percent or $24 million from $56 million on Dec. 31, 2015. Perficient, Inc. has recorded a decline in long-term debt over the last one year. It stood at $32 million as on Dec. 31, 2016, down 42.86 percent or $24 million from $56 million on Dec. 31, 2015. Total debt was 7.01 percent of total assets as on Dec. 31, 2016, compared with 11.81 percent on Dec. 31, 2015. Debt to equity ratio was at 0.09 as on Dec. 31, 2016, down from 0.16 as on Dec. 31, 2015.
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