Agilysys (AGYS) Posts Surprise Q3 Loss

Agilysys (Nasdaq: AGYS) reported Q3 EPS of ($0.06), $0.09 worse than the analyst estimate of $0.03. Revenue for the quarter came in at $24.7 million versus the consensus estimate of $25.6 million.

James Dennedy, President and CEO of Agilysys, commented, “Our financial results for the fiscal 2015 third quarter were below our expectations, but the results do reflect our strategy to pursue subscription-based solutions revenue and new logo business. While our sales strategy has the near-term effect of slowing our overall rate of revenue growth, it is leading to year-over-year increases in recurring revenue, in particular in our SaaS revenues which rose 16% compared to the year-ago quarter, as well as further positioning the Company for sustainable growth as we build our base of higher margin recurring revenue opportunities.”

Dennedy added, “By helping our customers innovate in the way they improve guest recruitment, increase wallet share and enhance guests interactions, we expect to accomplish our goals of increasing our market share through retention and expansion of our customer base, growing our total addressable market, and significantly expanding the mix of subscription-based revenue in our overall mix. We remain confident that through our continued expansion of new products and services Agilysys is solidly on the path toward accomplishing our business objectives and creating increased value for our shareholders.”

For earnings history and earnings-related data on Agilysys (AGYS) click here.

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