From an operational perspective, our investment in new areas such as managed print services, or MPS as we call it and digital color imaging, are both beginning to pay dividends. Our growth in managed print services has been particularly gratifying during this continuing period of low activity in the AEC market. Had we not exclude the diversification of our business, our revenues would have been dramatically affected during times like this.
Instead, we have been substantial – we have seen substantial MPS growth in the quarter, primarily from our larger global solutions customers, which drove the 12.8% increase in our FM revenue category versus the same quarter last year. Additional revenue support has come from improved color sales from the non-AEC segment of the market. While our progress in these areas does not entirely offset the decline of our project related business, it is strongly validating our diversified sales strategy.
Concerning our cash flow performance noted earlier, I think it also proves that our business model can continue to generate the kind of cash we have come to expect from ARC even as market and sales categories continue to evolve. One of those new and evolving categories for us has to do with the increasing use of technology in the construction space. We are seeing a shift in the use of technology, especially as it relates to document management.
Sharing, distributing, and collaborating are all becoming easier with several new solutions now available in the market. In addition, customers have started using a variety of software solutions for project management, collaboration, bidding and other tasks. However, these solutions are disconnected and vital information is often locked up in different silos, where it cannot be leveraged by the entire organization.Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV