Exhibit 99.1

 

 

AGILYSYS FISCAL 2020 FOURTH QUARTER REVENUE RISES 8% DESPITE IMPACT FROM COVID-19

Record Recurring Revenue, Inclusive of 30% Year Over Year Subscription Revenue Growth

Fiscal 2020 Net Revenue Increases 14% to Record $160.8 Million, Adjusted EBITDA Rises 27% to $13.0 Million

Cash Balance Increases to $46.7 Million at March 31, 2020

Alpharetta, GA – May 21, 2020 - Agilysys, Inc. (Nasdaq: AGYS), a global provider of next-generation hospitality software solutions and services, today reported operating results for its fiscal 2020 fourth quarter and full year ended March 31, 2020.

Summary of Fiscal 2020 Fourth Quarter Financial Results

 

 

Total net revenue was $39.7 million, compared to total net revenue of $36.6 million in the comparable prior-year period.

 

Recurring revenues (which are comprised of support, maintenance and subscription services) were a record $22.3 million, or 56% of total net revenue, compared to $19.4 million, or 53% of total net revenue, for the same period in fiscal 2020. Subscription revenues increased 30% year over year and comprised 39% of total recurring revenues, compared to 34% of total recurring revenues in the fourth quarter of fiscal 2019.

 

Gross margin was 49.6% in the fiscal 2020 fourth quarter, compared to 53.5% in the comparable prior-year period.

 

 

Net loss in the fiscal 2020 fourth quarter was $(27.0) million, or $(1.16) per diluted share, inclusive of one-time capitalized software related impairment charges, compared to a net loss of $(3.6) million, or $(0.16) per diluted share, in the comparable prior-year period.

 

Adjusted EBITDA (non-GAAP) was $3.6 million, compared to $2.4 million in the comparable prior-year period (see reconciliation below).

 

Adjusted diluted EPS (non-GAAP) was $0.05 per share compared to $0.03 per share in the comparable prior-year period.

 

Free cash flow (non-GAAP) in the fiscal 2020 fourth quarter was $4.9 million, compared to free cash flow of $3.9 million in the fiscal 2019 fourth quarter (see reconciliation below). Ending cash balance was $46.7 million, compared to ending cash balance of $40.8 million in the comparable prior-year period.

Ramesh Srinivasan, President and CEO of Agilysys, commented, “In spite of the significant pandemic related business challenges during the month of March, fiscal year 2020 was a major positive business momentum shift year for us. Beginning with three consecutive quarters of record revenue levels, Q4 fiscal 2020 was on pace to be a very successful sales quarter, and another record revenue quarter, prior to a disappointing ending shaped by COVID-19. As a result, we ended fiscal 2020 with full year revenue growth of 14.1%, compared to our expectation of 16% growth. The record $160.8 million fiscal 2020 revenue included an $8.2 million year-over-year increase in full year recurring revenue, which was the largest single year improvement in annual recurring revenue in six years signifying a successful year with respect to customer retention and business expansion. The increase in recurring revenue included the second consecutive year with a 24% rise in annual subscription revenue. In addition, the fiscal year-end cash balance grew to $46.7 million, our best cash balance position at the end of a quarter since March 2017.”

“We continue to be intensely focused on securing the safety and health of our employees, customers and the communities we serve in. We expect the current April-June fiscal 2021 first quarter to be challenging with a possible 35% year-over-year decline in revenue due to the general anticipated business downturn and as a result of various one-time recurring revenue related and other concessions we have given to customers to help them during this time of need. Providing as much help as possible to customers has been the right thing to do under the circumstances. Given all the cost reduction steps currently in place, even with the possible revenue reductions we face in the first quarter of fiscal 2021, we expect Q1 fiscal 2021 Adjusted EBITDA of approximately break-even for the quarter.”

“Thanks to the major increase in the pace of product innovation during the past couple of years, powered by an R&D team which has tripled in resource strength since January calendar 2017, we are well positioned to serve the increased and changing technology demands


The following information was filed by Agilysys Inc (AGYS) on Thursday, May 21, 2020 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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