For the three months ended March 31, 2017, tTech Limited (tTech) Operating Revenues for the period increased by 20% to $56.59 million compared to $47.14 million for the corresponding period last year. tTech highlighted, “our sales pipeline remains strong and the increase in cybercrime that is occurring both globally and in Jamaica will create opportunities for tTech as the services which the company provides mitigates many of the risks posed by the threat of cybercrime.”
Operating Expense increased by 29% to $52.63 million from $40.84 million for March 2016. The growth was due primarily to, “increases in the workforce over the first quarter in 2016,” according to tTech. The company further noted, “there was no change in headcount over the previous two quarters.”
As a result, Profit from Operations fell 37% to $3.96 million (2016: $6.30 million).
Other Income year over year posted a 4% improvement to $108,000 (2016: $104,000), while Investment Income declined 52% from $888,000 a year earlier in 2016 to $430,000 for the first quarter of 2017.
Consequently, Profit before Tax decreased by 38% from $7.29 million to $4.50 million. No Taxes were recorded for the period, thus Net Profit for the three months was reported at $4.50 million, a reduction of 38% on the prior year’s corresponding period of $7.29 million.
EPS for the quarter totaled $0.04 compared to a $0.07 in 2016. The number of shares used in our calculations is 106,000,000 units.
Management indicated, “during the quarter we closed new contracts with customers, however the results for the quarter were below expectations as we did not realize our revenue targets. The management team has review the first quarter performance, identified areas which need to be changed to improve our close rate and have started to implement these changes.”
Balance Sheet Highlights: As at March 31, 2017, the Company reported total assets of $199.35 million, an 18% increase when compared to $168.83 million in 2016. This was as a result of an increase in Government securities purchased under resale agreements to $97.11 million as at March 31, 2017 from $69.81 million the prior year. Additionally, Accounts Receivables increased to $39.59 million relative to $27.40 million for the first quarter of 2016. Shareholders’ Equity as at March 31, 2017 was $168.47 million compared to $135.89 million for the comparable period of 2016. This resulted in a book value per share of $1.59 compared to $1.28 the prior year.
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