This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Descartes Reports Fiscal 2014 First Quarter Financial Results

Stocks in this article: DSG DSGX

Record Operating Performance Driven by 14% Increase in Year-Over-Year Revenues

WATERLOO, Ontario, May 30, 2013 (GLOBE NEWSWIRE) -- Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG) announced financial results for its fiscal 2014 first quarter (Q1FY14) ended April 30, 2013. All financial results referenced are in United States (US) currency and, unless otherwise indicated, are determined in accordance with US Generally Accepted Accounting Principles (GAAP).

Q1FY14 Financial Results

As described in more detail below, key financial highlights for Descartes in Q1FY14 included:

  • Revenues of $34.0 million, up 14% from $29.9 million in the first quarter of fiscal 2013 (Q1FY13) and up 1% from $33.8 million in the previous quarter (Q4FY13);
  • Services revenues of $30.1 million, up 9% from $27.7 million in Q1FY13 and consistent with Q4FY13. Services revenues comprised 89% of total revenues for the quarter;
  • Gross margin of 69%, up from 65% in Q1FY13 and 68% in Q4FY13;
  • Cash provided by operating activities of $9.6 million, up from $4.4 million in Q1FY13 and down from $14.1 million in Q4FY13;
  • Income before income taxes of $4.8 million, up 9% from $4.4 million in Q1FY13 and up 14% from $4.2 million in Q4FY13;
  • Net income of $2.8 million, up 8% from $2.6 million in Q1FY13 and down from $7.8 million in Q4FY13. Q4FY13 net income was positively impacted by the release of valuation allowance of $5.3 million;
  • Earnings per share on a diluted basis of $0.04, consistent with Q1FY13 and down from $0.12 in Q4FY13;
  • Days-sales-outstanding (DSO) for Q1FY14 were 52 days, down from 58 days in Q1FY13 and 55 days in Q4FY13;
  • Adjusted EBITDA of $10.4 million, up 20% from $8.7 million in Q1FY13 and up 1% from $10.3 million in Q4FY13. Adjusted EBITDA as a percentage of revenues was 31%, up from 29% and 30% in Q1FY13 and Q4FY13, respectively; and
  • Adjusted EBITDA per share on a diluted basis of $0.16, up 19% from $0.14 in Q1FY13 and consistent with Q4FY13.

Adjusted EBITDA and Adjusted EBITDA per diluted share are non-GAAP financial measures provided as a complement to financial results presented in accordance with GAAP. We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization (for which we include amortization of intangible assets, deferred compensation, stock-based compensation and related fees and taxes) and other charges (for which we include acquisition-related expenses and restructuring charges). These items are considered by management to be outside Descartes' ongoing operational results. We define Adjusted EBITDA per diluted share as Adjusted EBITDA divided by the number of diluted shares used to calculate the GAAP measure of earnings per share. A reconciliation of Adjusted EBITDA and Adjusted EBITDA per diluted share to net income and earnings per share determined in accordance with GAAP, respectively, is provided later in this release.

1 of 7

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs