ARI Network Services, Inc. Announces Fiscal 2016 First Quarter Results
MILWAUKEE, Dec. 09, 2015 (GLOBE NEWSWIRE) — ARI Network Services, Inc. (NASDAQ:ARIS), an award-winning provider of SaaS, software tools and marketing services that help dealers, distributors and manufacturers Sell More Stuff!™, reported financial results today for its fiscal 2016 first quarter ended October 31, 2015.
Highlights for the fiscal first quarter included:Revenue increased 28.8% to $11.7 million, which compares with $9.1 million for the same period last year and $10.9 million in 4Q15. Recurring revenue increased 31.4% to $10.7 million, which compares with $8.2 million for the same period last year and $9.8 million in 4Q15.Operating income was $808,000, compared with $283,000 for the same period last year and $686,000 in 4Q15.Adjusted EBITDA, a non-GAAP measure, increased 54.7% to $2.0 million, or 17.2% of revenue. This compares with Adjusted EBITDA of $1.3 million, or 14.3% of revenue in the same period last year and $1.8 million, or 16.5% of revenue in 4Q15.Cash generated from operations was $1.7 million, compared with $1.6 million for the same period last year and $1.7 million in 4Q15.Fiscal Year 2016 First Quarter FinancialsARI achieved 28.8% revenue growth as it reported revenues of $11.7 million for the first quarter of fiscal year 2016, compared with $9.1 million for the same period last year. Recurring revenue comprised 91.2% of total revenue versus 89.4% for the same period last year.Gross margin for the first quarter of fiscal year 2016 was 82.4% versus 80.8% last year.Operating income was $808,000 for the first quarter of fiscal year 2016, compared with operating income of $283,000 for the same period last year, a 185.5% increase.The company reported net income of $389,000, or $0.02 per diluted share for the quarter, compared with net income of $104,000 or $0.01 per share last year.Management Discussion
Roy W. Olivier, President and Chief Executive Officer of ARI, commented, “In the first quarter of fiscal 2016, we were able to experience the full impact of all three of the acquisitions we completed in fiscal 2015. The results demonstrate the significant progress we have made over the past year in expanding our product and service offerings and increasing the size of our total addressable market. Recurring revenue increased at a faster rate than our overall revenue, which is indicative of the growing number of customers subscribing to our SaaS and other recurring revenue offerings, as well as an increase in the overall spend of those customers. This is a strong start to our fiscal 2016, and we look forward to building upon this performance through the remainder of the year.”William Nurthen, Chief Financial Officer of ARI, commented, “In the first quarter of fiscal 2016, we were able to reverse a three-year trend in which we experienced a sequential drop in Adjusted EBITDA from the prior fourth quarter. Adjusted EBITDA not only improved over 4Q15, but it also topped $2 million for the first time in the Company’s history. We also experienced another strong quarter of cash flow, despite transitioning some of our customers to monthly billing, and were able to increase our overall cash balance to $3.2 million at period end. The Adjusted EBITDA and cash flow performance continue to better position us to execute on future investment opportunities that align with our growth strategy.”Fiscal 2016 First Quarter Conference Call
ARI will conduct a conference call on Wednesday December 9, 2015, at 4:30 p.m. EST, to review the financial results for the fiscal quarter ended October 31, 2015. Interested parties can access the conference call by dialing 877.359.3639 or 408.427.3725 and referring to Conference ID: 56616344. The conference call is also being webcast and is available via the Company’s investor relations website at investor.arinet.com. A replay of the webcast will be archived on the Company’s investor relations website for 60 days.