Agilysys, Inc. (Nasdaq: AGYS), a leading developer and marketer of proprietary enterprise software, services and solutions to the hospitality and retail industries, today announced unaudited financial results for the fiscal 2013 first quarter ended June 30, 2012.
Summary Fiscal 2013 First-Quarter Unaudited Financial Results From Continuing Operations
- Total net revenue declined 2% to $51.6 million, compared with $52.6 million in the same prior-year period. The Hospitality segment was up 15% year over year, while the Retail segment was down 11%, due to significant hardware revenue sales that occurred in fiscal 2012, which did not repeat in the current fiscal year.
- Although revenues were slightly down year over year, gross profit grew significantly as the movement to higher quality revenue continued. Gross profit increased by $2.3 million, or 13%, resulting in a gross margin of 39.5%, compared with 34.4% in the same prior-year period.
- Adjusted operating income (excluding stock-based compensation, amortization of acquisition-related intangibles and other one-time items) increased $3.5 million to $1.0 million, reversing prior-year adjusted operating loss of $2.5 million. (See reconciliation below.)
- Adjusted net income (non-GAAP) from continuing operations grew to $0.7 million, or $0.03 per share, compared with adjusted net loss of $2.9 million, or ($0.12) per share, last year. (See reconciliation below.)
- GAAP net loss narrowed to $1.6 million, or ($0.07) per share, from the loss of $6.9 million, or ($0.30) per share, for the same period in the prior fiscal year.
- Operating results from former Technology Solutions Group (TSG), including gain on sale, as well as its assets and liabilities, reported as components of discontinued operations during fiscal 2012.
“Entering fiscal 2013, we continued to make significant progress transitioning our business model to higher-quality and recurring revenue streams to produce more consistent and sustainable growth,” commented President and CEO James Dennedy. “Revenues from Support, Maintenance and Subscription Services, combined with Professional Services, grew 12%, nearly offsetting the 14% decline in Products revenue during the quarter. We remain keenly focused on high-quality revenue opportunities in the high-end segments of the markets we serve. Over time, our focus on high-quality products, services, markets and revenue will result in a growing, profitable business that will outperform the market.”