Agilysys(US:AGYS)2025-01-21 21:11Revenue Growth - Total net revenue increased by $9.0 million, or 14.9%, during the third quarter of fiscal 2025 compared to the same period in fiscal 2024[112] - Subscription and maintenance revenue rose by $9.3 million, or 26.4%, driven by growth in subscription-based services, including those for Book4Time customers[113] - Total net revenue increased by $26.1 million, or 14.9%, during the first nine months of fiscal 2025 compared to the same period in fiscal 2024[126] - Subscription and maintenance revenue rose by $22.4 million, or 22.0%, driven by growth in subscription-based services[127] Profitability - Gross profit increased by $6.0 million, or 15.9%, with a gross profit margin rising from 62.5% to 63.0% compared to the third quarter of fiscal 2024[114] - Gross profit increased by $21.0 million, or 19.8%, with gross profit margin rising from 60.5% to 63.0%[128] - Operating income increased by $5.0 million, or 40.8%, with operating income percentage improving from 7.0% to 8.6%[126] Operating Expenses - Operating expenses increased by $5.1 million, or 16.5%, during the third quarter of fiscal 2025 compared to the same quarter in fiscal 2024[115] - Sales and marketing expenses surged by $2.9 million, or 46.9%, due to increased compensation and marketing activities following the Book4Time acquisition[116] Acquisition - The company acquired Book4Time for $147.2 million, partially funded by a credit agreement established on August 16, 2024[105] - The company completed the acquisition of Book4Time for $144.9 million during the nine months ended December 31, 2024[142] Cash Flow - Cash flow from operating activities was $27.976 million, up from $18.379 million in the prior year[144] - Cash flow from financing activities included $49.6 million in debt proceeds and $12.0 million in debt repayments for the nine months ended December 31, 2024[146] Taxation - The income tax provision for the third quarter of fiscal 2025 was $3.9 million, with an effective tax rate of 50.5%[122] - The effective tax rate for the nine months ended December 31, 2024, was 4.7%, influenced by discrete excess tax benefits associated with share-based compensation[137] Financial Position - Total cash and cash equivalents were $60.8 million as of December 31, 2024, with 87% located in the United States[143] - Share repurchase for employee tax withholding decreased from $5.7 million to $2.8 million during the same period[146] - Preferred stock dividend payments reduced from $1.7 million to zero during the respective periods[146] Risk and Compliance - No significant changes to contractual obligations as of December 31, 2024, compared to the Annual Report for the year ended March 31, 2024[147] - No off-balance sheet arrangements that could impact financial condition or results of operations[148] - No material changes in significant accounting policies since March 31, 2024[149] - Forward-looking statements indicate management's expectations and are subject to risks and uncertainties[150] - No material changes in market risk exposures since March 31, 2024[151]