This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Ultimate Software Group's CEO Discusses Q1 2012 Results - Earnings Call Transcript

Now turning to the details, our recurring revenue gross margin of 69.5% was consistent with our expectations as we continue to make investments in our tax filings and our SaaS infrastructure that we've discussed in the past. The services gross margin was 5.9%, which was impacted favorably by the higher services revenues. As a reminder, Q1 also includes annual revenues related to the production of W-2s for our clients. And these do not occur in any other quarter of the year. We are maintaining our 2% to 5% gross margin guidance for 2012 as we will continue to add billable consultants due to continued sales growth.

The gross margin rate for total revenues was 55.7%. The change from 2011 was related to the expected lower recurring revenues gross margins based upon the planned headcount additions to our tax filing and SaaS infrastructure teams in the beginning of this year.

Operating expenses were $37.1 million for the quarter and were favorable to our expectations. We expect a significant portion of these expense savings to be incurred later this year.

Operating income was $6.4 million, and our operating margin was 8.2% for the quarter compared to $4.9 million and 7.6% for the same quarter last year. The excess margin over our guidance was due to the higher recurring and services revenues, coupled with slightly lower costs. Net income was $3.7 million or $0.13 per diluted share compared with $2.8 million and $0.10 per diluted share for the same quarter last year. Our non-GAAP income tax rate for the quarter was 42%.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs