tTech reports 32% decline in nine months net profit
tTech Limited (tTech) for the nine months ended September 30, 2017: booked a 2% decline in operating revenues for the period to $163.63 million compared to $166.15 million for the corresponding period last year. Revenue for the quarter contracted 8% from $60.58 million in September 2016 to $55.80 million. According to tTech, “Revenues for our recurrent managed services increased over 2016 but we did not realize any major projects in this quarter which would have boosted our revenues”.
Operating Expense rose 4% to $149.90 million from the $143.69 million reported in September 2016. Profit from Operations fell 39% for the period to $13.74 million (2016: $22.46 million).
Other Income year over year posted declined 70% to $862,000 (2016: $2.85 million), while Investment Income rose 223% from $1.07 million a year earlier in 2016 to $3.47 million for the first nine months of 2017.
Consequently, Profit before Tax decreased by 32% from $26.38 million to $18.07 million. No Taxes were recorded for the period, thus Net Profit for the nine months was reported at $18.07 million. Notably, net profit for the third quarter also reflected decline of 22% from $8.56 million booked for the third quarter of 2016 to $6.69 million.
tTech noted, “A partner agreement with Loris Technologies signed recently. Loris is an established Canadian company that is the developer of the FileNexus cloud based enterprise workflow/document management system. Initial reviews of FileNexus from our existing customers have been favourable and we are working with Loris to prepare our launch strategy at the beginning of 2018. In the interim we will be offering the service to our existing customers as several have the need for this type of solution”
The earnings per share (EPS) for the period amounted to $0.17 relative to $0.25 reported in 2016, while the EPS for the quarter totaled $0.06 compared to a $0.08 in 2016. The trailing EPS amounted to $0.29. The number of shares used in our calculations is 106,000,000 units.
Balance Sheet Highlights:
As at September 30, 2017, the Company reported total assets of $211.54 million, a 12% increase when compared to $188.39 million in 2016. This was as a result of an increase in investments which amounted to $29.19 million an increase of $26.88 million for the nine months.
Shareholders’ Equity as at September 30, 2017 was $177.80 million compared to $151.01 million for the comparable period of 2016. This resulted in a book value per share of $1.68 compared to $1.42 the prior year.
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