Revenue during the quarter surged 36.46 percent to $383.30 million from $280.89 million in the previous year period. Gross margin for the quarter contracted 21 basis points over the previous year period to 45.73 percent. Total expenses were 79.94 percent of quarterly revenues, down from 94.68 percent for the same period last year. This has led to an improvement of 1474 basis points in operating margin to 20.06 percent.

Operating income for the quarter was $76.90 million, compared with $14.95 million in the previous year period.

However, the adjusted operating income for the quarter stood at $150.47 million compared to $125.31 million in the prior year period. At the same time, adjusted operating margin contracted 535 basis points in the quarter to 39.26 percent from 44.61 percent in the last year period.

“SS&C is pleased to report record adjusted revenues of $391.9 million for Q3 2016, and adjusted diluted earnings per share of $0.42 cents,” says Bill Stone, chairman and chief executive officer. “Our business has grown sharply over the past year and our last twelve months’ consolidated EBTIDA is over $600 million. We have integrated the people and products from Advent, Varden, Primatics and Citi Alternative Investor Services. At SS&C, we change. Our research and development spend, acquisitions and onboarding talent encourages creativity and critical thinking. This enables us to service our clients’ demands in a complex and evolving regulatory environment.”

For the fourth-quarter, Ss&C Technologies Holdings forecasts adjusted revenue to be in the range of $394 million to $403 million. Ss&C Technologies Holdings forecasts adjusted revenue to be in the range of $1,513.40 million to $1,522.40 million for fiscal year 2017. Ss&C Technologies Holdings expects adjusted net income to be in the range of $89.40 million to $92.40 million for the fourth-quarter. For the financial year 2017, Ss&C Technologies Holdings expects adjusted net income to be in the range of $331.80 million to $334.80 million.

The company has spent $334.67 million cash to meet investing activities during the nine month period as against cash outgo of $2,627.56 million in the last year period. It has incurred net capital expenditure of $24.94 million on net basis during the nine month period, up 95.19 percent or $12.16 million from year ago period.

The company has spent $233.83 million cash to carry out financing activities during the nine month period as against cash inflow of $2,905.19 million in the last year period.

Cash and cash equivalents stood at $101.80 million as on Sep. 30, 2016, down 79.79 percent or $402.01 million from $503.81 million on Sep. 30, 2015.

Working capital turns negative
Working capital of SS&C Technologies Holdings, Inc has turned negative to $1.92 million on Sep. 30, 2016 from positive $386.09 million on Sep. 30, 2015. Current ratio was at 1 as on Sep. 30, 2016, down from 2.14 on Sep. 30, 2015.

Days sales outstanding went down to 40 days for the quarter compared with 41 days for the same period last year.

At the same time, days payable outstanding went down to 6 days for the quarter from 7 for the same period last year.