Agilysys(AGYS)2024-05-21 23:33Revenue Growth - Total net revenue increased by 237.5 million[200] - Subscription and maintenance revenue grew by 14.2 million, or 39.2%, due to higher sales and service activity[200] - Total net revenue increased by 198.1 million[216] - Subscription and maintenance revenue grew by 23.4 million, or 19.4%, with a gross profit margin slightly decreasing from 61.0% to 60.7%[201] - Operating income rose by 15.8 million, with an operating income percentage of 6.6%[198] - Gross profit increased by 12.9 million in fiscal 2023, with an operating income percentage of 6.5% compared to 3.9% in fiscal 2022[216] Expenses - Product development expenses increased by 5.7 million, or 25.2%, reflecting hiring and expanded marketing activities[204] - Operating expenses, excluding legal settlements and other charges, rose by 8.0 million, or 54.2%, due to increased investments in marketing activities and key hires[221] Cash Flow and Financial Position - Cash flows provided by operating activities were 34.5 million in fiscal 2023[237] - As of March 31, 2024, the company had cash on hand of 8.6 million, including share repurchases of 1.7 million in preferred stock dividends[242] - Cash flows used in financing activities in fiscal 2023 were 9.3 million and 4.9 million, primarily from share repurchases of 1.8 million in preferred stock dividends[243] Taxation - The effective tax rate for fiscal 2024 was not meaningful due to the release of valuation allowances against deferred tax assets[212] - The effective tax rate for fiscal 2023 was 7.5%, significantly higher than 0.5% in fiscal 2022, due to adjustments to deferred tax assets[230] - The company anticipates a potential release of valuation allowances on deferred tax assets, which could result in significant income tax benefits[233] Revenue Recognition - The company recognizes subscription service revenue over a one-month period based on typical monthly invoicing and renewal cycles[254] - The company recognizes revenue for hardware sales when the product is shipped to the customer, fulfilling obligations affecting customer acceptance[253] - The company utilizes the market approach to determine standalone selling price by maximizing observable data points from recently executed customer contracts[257] International Operations - Revenue from international operations constituted 6% of total revenue in fiscal 2024, down from 7% in both fiscal 2023 and 2022[262] Other Financial Information - The cash surrender value of corporate-owned life insurance policies was recorded at 0.1 million[244] - The company has not entered into any off-balance sheet arrangements that could affect its financial condition or results of operations[245]