Agilysys(US:AGYS)2022-10-27 16:00Financial Performance - Total net revenue for the three months ended September 30, 2022, was $47,742,000, representing a 26% increase from $37,892,000 in the same period of 2021[9] - Subscription and maintenance revenue increased to $29,036,000 for the three months ended September 30, 2022, up from $24,027,000, marking a 21% growth[9] - Gross profit margin for the three months ended September 30, 2022, was 61.5%, slightly down from 64.0% in the same period of 2021[9] - Operating income for the three months ended September 30, 2022, was $2,927,000, compared to $1,120,000 in the same period of 2021, reflecting a significant increase[9] - Net income attributable to common shareholders for the three months ended September 30, 2022, was $3,117,000, up from $523,000 in the same period of 2021, indicating a substantial growth[9] - Net income for the three months ended September 30, 2022, was $3,576,000, compared to $982,000 for the same period in 2021, representing a significant increase of 264%[12] - Total comprehensive income for the six months ended September 30, 2022, was $5,961,000, up from $2,972,000 in the prior year, reflecting an increase of 101%[12] - Operating income for the six months ended September 30, 2022, was $5,960,000, a significant increase from $3,162,000 for the same period in 2021[9] - Basic income per share increased to $0.13 for the three months ended September 30, 2022, compared to $0.02 for the same period in 2021, while diluted income per share rose to $0.12 from $0.02[56] Assets and Liabilities - Total assets as of September 30, 2022, were $220,766,000, an increase from $214,162,000 as of March 31, 2022[7] - Total current liabilities decreased to $62,054,000 as of September 30, 2022, from $71,466,000 as of March 31, 2022, showing improved financial health[7] - Cash and cash equivalents were $96,196,000 as of September 30, 2022, slightly down from $96,971,000 as of March 31, 2022[7] - The company recorded total accrued liabilities of $9.959 million as of September 30, 2022, down from $10.552 million as of March 31, 2022[46] - Cash payments for operating leases were $2.619 million for the six months ended September 30, 2022, compared to $2.308 million for the same period in 2021[48] Revenue Recognition - Revenue recognized at a point in time totaled $10.5 million and $21.6 million for the three months ended September 30, 2022 and 2021, respectively[39] - Revenue recognized over time totaled $37.2 million and $73.7 million for the three months ended September 30, 2022 and 2021, respectively[39] - Contract liabilities included revenue recognized from amounts at the beginning of the period of $13.9 million and $12.2 million for the three months ended September 30, 2022 and 2021, respectively[41] - Professional services revenue recognized over time totaled $37.2 million for Q3 2022, up from $30.6 million in Q3 2021, representing a 21.6% increase[39] - Revenue from product sales recognized at a point in time was $10.5 million for Q3 2022, compared to $7.3 million in Q3 2021, reflecting a 43.8% increase[39] Acquisition and Investments - The company acquired ResortSuite Inc. for a total net cash consideration of $24.5 million, enhancing its offerings in the complex multi-amenity and resort market[74] - The total purchase price for ResortSuite was $24.8 million, with identifiable intangible assets valued at $12.2 million and goodwill of $13.1 million[76][77] - Revenue attributable to ResortSuite for the three and six months ended September 30, 2022, was $1.3 million and $2.6 million, respectively[79] - The company recognized acquisition costs of $0.1 million related to the ResortSuite acquisition, primarily for professional fees[79] Share-Based Compensation - Share-based compensation for the six months ended September 30, 2022, was $5,944,000, compared to $6,963,000 in the same period of 2021[14] - The total share-based compensation expense for the six months ended September 30, 2022, was $5.9 million, a decrease from $7.0 million in the same period of 2021[62] - The company has a total of 1,946,565 stock-settled appreciation rights (SSARs) outstanding as of September 30, 2022, with an aggregate intrinsic value of $59.6 million[66] - As of September 30, 2022, total unrecognized share-based compensation expense related to unvested restricted shares was $11.2 million, expected to be recognized over a weighted-average vesting period of 2.4 years[68] Tax and Legal Matters - The effective tax rate for the three months ended September 30, 2022 was (4.6)% compared to 4.7% for the same period in 2021[49] - The company’s India subsidiary operates in a Special Economic Zone, benefiting from reduced income tax rates during its operational phases[49] - The company is involved in various legal actions and contingencies, but management believes that the ultimate resolution will not have a material adverse effect on its financial position[53] Market Presence and Strategy - The company has been a leader in hospitality software for over 40 years, providing innovative cloud-native SaaS solutions for various sectors including hotels and restaurants[21] - Agilysys operates across multiple regions including North America, Europe, and Asia-Pacific, enhancing guest experiences and operational efficiencies[21] - The company continues to focus on expanding its market presence and enhancing its software solutions to drive revenue growth[21] - The company plans to continue investing in product development and market expansion to drive future growth[9]