Agilysys(US:AGYS)2023-01-25 16:00Revenue Growth - Total net revenue increased by $10.5 million, or 26.5%, during the third quarter of fiscal 2023 compared to the same period in fiscal 2022[81] - Total net revenue increased by $29.1 million, or 25.1%, during the first nine months of fiscal 2023 compared to the same period in fiscal 2022[95] - Products revenue rose by $2.6 million, or 32.0%, driven by higher sales to new and existing customers[81] - Products revenue increased by $8.0 million, or 33.2%, driven by higher sales and deliveries to new and existing customers[95] - Subscription and maintenance revenue grew by $5.0 million, or 20.0%, with subscription-based service revenue increasing by 28.8%[81] - Subscription and maintenance revenue rose by $14.5 million, or 20.1%, with subscription-based service revenue growing by 28.9%[95] - Professional services revenue increased by $2.8 million, or 45.7%, due to higher sales and service activity[81] Profitability - Gross profit increased by $6.1 million, or 24.5%, while gross profit margin decreased from 62.6% to 61.7%[83] - Gross profit increased by $14.8 million, or 20.0%, while gross profit margin decreased from 63.6% to 61.1%[97] - Operating income rose to $3.5 million, representing an increase of 116.0% compared to the previous year[81] - Operating income increased by $4.7 million, or 97.8%, reaching $9.4 million, with an operating income percentage of 6.5%[95] Expenses - Operating expenses, excluding other charges and legal settlements, increased by $4.4 million, or 19.3%[84] - Operating expenses, excluding other charges and legal settlements, rose by $11.2 million, or 16.6%[98] - Sales and marketing expenses surged by $1.9 million, or 49.3%, due to increased marketing activities and key hires[85] Cash Flow and Financial Position - Cash flow provided by operating activities was $17.7 million, attributed to cash-based earnings of $22.3 million[110] - As of December 31, 2022, cash and cash equivalents totaled $105.8 million, with 92% located in the United States[109] - Interest income increased significantly to $(1.2 million) from $(45,000), reflecting changes in cash equivalents[102] Taxation - The effective tax rate for the three months ended December 31, 2022, was 14.8%, compared to 1.5% in the previous year[91] - The effective tax rate for the nine months ended December 31, 2022, was 8.1%, up from 5.6% in the prior year[105] Strategic Initiatives - The company plans to invest a portion of its cash on hand to enhance existing software products and develop new ones[76] Market Risk - There have been no material changes in market risk exposures since March 31, 2022[116]