Stock within Traders Radar: CSG Systems International, Inc. (NASDAQ: CSGS)

On Friday CSG Systems International, Inc. (NASDAQ: CSGS) ended the last transaction at $35.92, with a change of -1.05% or -0.38points. The daily volume was calculated at volume shares 97,735. The company has a market worth of $1.204B. It holds an average volume of 172,741 shares. In recent session, the stock hit the peak level of $36.62 and touched to lowest level of $35.90.

CSG (CSGS), the trusted partner to simplify the complexity of business transformation in the digital age, recently stated results for the quarter ended June 30, 2018.

Key Highlights:

• Second quarter 2018 financial results:

  • Total revenues were $213.0M.
  • GAAP operating income was$24.1M, or 3% of total revenues, and non-GAAP operating income was $35.6M, or 16.7% of total revenues.
  • GAAP earnings per diluted share (EPS) was $0.46. Non-GAAP EPS was $0.73.
  • Cash flows from operations were negative $(3.6)

• CSG reported its quarterly cash dividend of $0.21per share of ordinary stock, or a total of about $7M, to shareholders.

“We delivered another solid quarter demonstrating the progress that we are making on our planned initiatives aimed at driving revenue growth and profits,” stated Bret Griess, president and chief executive officer for CSG. “We grew our Ascendon, managed services and total revenues by double digits. We expanded our footprint in the telecom and financial services verticals, helping to diversify our revenue streams. And importantly, we continue to get broader and deeper within our clients’ businesses. We remain focused on our continued execution of our plan aimed at creating long-term value for our shareholders, clients and employees.”

Results of Operations

Total Revenues: Total revenues for the second quarter of 2018 were $213.0M, an 11% raise when contrast to revenues of $192.7M for the second quarter of 2017, and a 6% raise when contrast to revenues of $201.7M for the first quarter of 2018. The year-over-year raise in revenues can be primarily attributed to the acquisition of Business Ink on February 28, 2018, which generated about $16M of revenue for the second quarter of 2018, and the continued growth in CSG’s cloud solutions and managed services offerings. The sequential quarterly raise is mainly Because of the second quarter of 2018 having a full quarter of Business Ink revenues as contrast to only one month of revenues in the first quarter of 2018.

GAAP Results: GAAP operating income for the second quarter of 2018 was $24.1M, or 11.3% of total revenues, contrast to $24.2M, or 12.6% of total revenues, for the second quarter of 2017, and $25.8M, or 12.8% of total revenues, for the first quarter of 2018.

GAAP EPS for the second quarter of 2018 was $0.46, as contrast to $0.35 for the second quarter of 2017, and $0.42 for the first quarter of 2018. The year-over-year raise in GAAP EPS is primarily Because of a lower effective tax rate resulting primarily from the U.S. Tax Reform enacted in December 2017.

Non-GAAP Results: Non-GAAP operating income for the second quarter of 2018 was $35.6M, or 16.7% of total revenues, contrast to $34.7M, or 18.0% of total revenues, for the second quarter of 2017, and $35.3M, or 17.5% of total revenues for the first quarter of 2018. Non-GAAP EPS for the second quarter of 2018 was $0.73, contrast to $0.62 for the second quarter of 2017, and $0.69 for the first quarter of 2018.

The higher non-GAAP EPS for the second quarter of 2018 when contrast to the second quarter of 2017 is primarily the result of a lower non-GAAP effective income tax rate of 27%, contrast to 34% for the second quarter of 2017. The lower non-GAAP effective income tax rate is Because of the U.S. Tax Reform enacted in December 2017.

Balance Sheet and Cash Flows

Cash, cash equivalents and short-term investments at June 30, 2018 were $186.4M, contrast to $222.1M as of March 31, 2018 and $261.4M as of December 31, 2017. CSG had net cash flows from operations for the second quarters ended June 30, 2018 and 2017 of negative $(3.6)M and $34.5M, respectively, and had non-GAAP free cash flow of negative $(18.1)M and $25.3M, respectively. Cash flows from operations for the second quarter of 2018 were negatively influenced by an raise in accounts receivable, primarily related to the timing about a recurring client payment that was delayed and received subsequent to quarter-end.

 

A look on the firm performance, its monthly performance is -13.78% and a quarterly performance of -12.54%. The stock price is trading downbeat from its 200 days moving average with -14.91% and down from 50 days moving average with -6.31%.