ARC Document Solutions (ARC) Reports In-Line Q1 EPS

ARC Document Solutions (NYSE: ARC) reported Q1 EPS of $0.06, in-line with the analyst estimate of $0.06. Revenue for the quarter came in at $103.6 million versus the consensus estimate of $100.55 million.

"We continue to make progress towards the transformation of the company," said K. "Suri" Suriyakumar, Chairman, President and CEO of ARC Document Solutions. "Our sales performance was as expected but the margins were softer due to our product mix. That said, our technology enabled services continued to grow, especially our AIM solution. We are working hard to offset the slow secular declines in our traditional business with new solutions and we are executing on our plans as expected, and I'm pleased with the direction in which we're headed."

"I'm also happy to announce the appointment of John Freeland to our Board of Directors," Mr. Suriyakumar continued. "As a part of our transition, we're actively seeking out candidates with strong backgrounds in building and leading technology-enabled companies, and John is a great fit. His experience and leadership with Accenture, salesforce.com, and IRI will bring a fresh perspective to our thinking and decisions on the Board. I look forward to his contributions."

"As usual, strong cash generation characterized the first quarter for ARC," said Jorge Avalos, Chief Financial Officer of ARC Document Solutions. "While we saw cash from operations off to its usual slow start due to seasonal timing of sales, our ability to execute our stock repurchase plan was unaffected. We bought $2.7 million of ARC common stock in the open market during the period, and further reduced the principal of our senior debt by more than $4 million."

GUIDANCE:

ARC Document Solutions reaffirmed FY2016 guidance. ARC Document Solutions sees FY2016 EPS of $0.30-$0.35, versus the consensus of $0.33.

For earnings history and earnings-related data on ARC Document Solutions (ARC) click here.

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