MAM Software Group Inc (NASDAQ:MAMS) reported on Friday higher full-year revenue in fiscal 2018 because of an increase in funds flowing in from its businesses although earnings per share fell for the year, with the company expressing optimism profits will grow in 2019 and the years ahead as spending for research and development bears fruit
The full year revenue of MAM hit US$35.77mln, compared with US$31.6mln in the previous year. Net income reached US$3.21mln, down from US$4.57mln. Earnings per share fell to US$0.27 from US$0.39.
The fiscal fourth quarter performance of the company showed revenue at US$9.53mln, beating both last year's US$8.28mln and the consensus expectation by a single analyst of US$9.3mln. Net income fell to US$958,000, against US$2.43mln and earnngs per share reached US$0.08, one third lower than the same quarter last year of US$0.21 but matching the consensus of the one analyst at US$0.08.
"We have a business plan for fiscal 2019 that we believe will deliver both top-line growth and increased profitability," said Michael Jamieson, the company's president and chief executive.
"Our business is generating substantial levels of cash from operations that sufficiently funded our investments in research and development, funded our debt service and increased our cash reserves," he added.
Shares of MAM closed on Friday down 0.73% at US$8.19. They were trading unchanged in after-hours trade.
The company said it expects continued revenue growth during fiscal 2019 of approximately 10% and continuing improvement in profitability with 2019 Adjusted EBITDA in the range of US$6.2mln to US$6.7mln, on a constant currency basis. MAM also expects to invest some US$7.0mln in research and development, including capitalized software development costs.
MAM is a provider of on-premise and cloud-based business management solutions for auto arts, tire and other industries. The company is based in Blue Bell, Pennsylvania.