Agilysys Inc (AGYS) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

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Agilysys Inc
Ticker: AGYS CIK: 78749

AGILYSYS FISCAL 2019 SECOND QUARTER REVENUE RISES 14% TO RECORD $34.2 MILLION

Recurring Revenue Increases 10% to Record $18.9 Million, Inclusive of 27% Growth in SaaS Revenue

Third Consecutive Quarter of Positive Adjusted Earnings from Operations

Alpharetta, GA - October 25, 2018 -

Agilysys, Inc. (Nasdaq: AGYS), a global provider of next-generation hospitality software solutions and services, today reported operating results for its fiscal 2019 second quarter ended September 30, 2018.

Summary of Fiscal 2019 Second Quarter Financial Results


•	Total net revenue was a record $34.2 million, compared to total net revenue of $30.1 million in the comparable prior-year period.

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Recurring revenues (which are comprised of support, maintenance and subscription services) were a record $18.9 million, or 55% of total net revenue, compared to $17.1 million, or 57% of total net revenue, for the same period in fiscal 2018. SaaS revenues increased 27% year over year and comprised 34% of total recurring revenues, compared to 29% of total recurring revenues in the second quarter of fiscal 2018.


•	Gross margin was 51.9% in the fiscal 2019 second quarter, compared to 51.0% in the prior-year period.


•	Net loss in the fiscal 2019 second quarter was $(3.8) million, or $(0.16) per diluted share, compared to a net loss of $(3.2) million, or $(0.14) per diluted share, in the prior-year period.

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Adjusted EBITDA (non-GAAP) was $2.6 million, compared to Adjusted EBITDA of $2.3 million in the same period last year. As described below, due to a change in software development and deployment methodologies during the quarter, capitalized software development costs were significantly lower compared to the same period last year. If all software development costs were not capitalized in both periods (non-GAAP), then Adjusted EBITDA would have been $2.6 million in the fiscal 2019 second quarter and Adjusted EBITDA in the fiscal 2018 second quarter would have been $(0.2) million (see reconciliation below).


•	Adjusted earnings from operations (“AOE”) (non-GAAP) in the fiscal 2019 second quarter was $2.0 million, compared to a loss in the fiscal 2018 second quarter of $(1.2) million (see reconciliation below).

As previously reported, the fiscal 2019 second quarter is the first quarter in which the Company adopted agile development and deployment methodologies across all of its products, allowing for significantly reduced time between the design of new products and their distribution in the market. The result of this change increased the amount of product development costs included in operating expenses and significantly decreased the amount of product development costs capitalized in the quarter. A reconciliation table on the last page of this release provides a comparison of the previously reported fiscal 2018 second quarter Adjusted EBITDA to a presentation that incorporates all software development costs as if they were not capitalized in both periods.

Ramesh Srinivasan, President and CEO of Agilysys, commented, “The fiscal 2019 second quarter results continue to demonstrate our ability to generate record revenue and improve our overall financial health while also continuing to elevate our talent levels. The fiscal 2019 second quarter was the second consecutive quarter we generated record revenue and the fourth consecutive quarter of sequential revenue growth. The 14% year over year quarterly revenue growth was driven by SaaS revenue growth of 27%, among other factors. Overall recurring revenue increased to a quarterly record $18.9 million. With recurring revenue, including SaaS revenue, accounting for approximately 55% of overall revenue in the fiscal 2019 second quarter and our highly predictable services revenue accounting for approximately 19% of overall revenue, we continue to have good revenue visibility.

The following information was filed by Agilysys Inc (AGYS) on Thursday, October 25, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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