Teletech Holdings (TTEC) has reported 71.45 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $19.24 million, or $0.42 a share in the quarter, compared with $11.22 million, or $0.23 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $19.33 million, or $0.42 a share compared with $12.16 million or $0.25 a share, a year ago.
Revenue during the quarter grew 8.28 percent to $338.28 million from $312.41 million in the previous year period. Gross margin for the quarter contracted 101 basis points over the previous year period to 24.94 percent. Total expenses were 92.17 percent of quarterly revenues, down from 94.32 percent for the same period last year. This has led to an improvement of 215 basis points in operating margin to 7.83 percent.
Operating income for the quarter was $26.49 million, compared with $17.75 million in the previous year period.
However, the adjusted operating income for the quarter stood at $26.66 million compared to $17.84 million in the prior year period. At the same time, adjusted operating margin improved 217 basis points in the quarter to 7.88 percent from 5.71 percent in the last year period.
"The Company’s key financial metrics increased year-over-year, including bookings, revenue, operating income, net income, cash flow from operations, and earnings per share. The sales execution and profit enhancement strategies we implemented in 2016 are paying off as evidenced by our first quarter results," commented Ken Tuchman, chairman and chief executive officer of TeleTech. "In addition, in early April 2017, we completed the strategic acquisition of the healthcare services company Connextions from OptumHealth. This acquisition continues to advance our healthcare footprint with increased diversification in our client base and offerings and expands our existing healthcare platform."
For financial year 2017, Teletech Holdings forecasts revenue to be in the range of $1,400 million to $1,410 million. The company forecasts operating income to grow in the range of 8.30 percent to 8.50 percent.
Working capital declinesTeletech Holdings has witnessed a decline in the working capital over the last year. It stood at $223.67 million as at Mar. 31, 2017, down 8.83 percent or $21.65 million from $245.33 million on Mar. 31, 2016. Current ratio was at 2.12 as on Mar. 31, 2017, down from 2.25 on Mar. 31, 2016. Days sales outstanding went down to 75 days for the quarter compared with 85 days for the same period last year.
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