PITTSBURGH, PENNSYLVANIA, October 31, 2017 -- Black Box Corporation (NASDAQ:BBOX), a leading digital solutions provider dedicated to helping customers design, build, manage and secure their IT infrastructure, today reported results for the second quarter of Fiscal 2018 and six-month period ended September 30, 2017. Items marked with an asterisk are non-GAAP financial measures.
- Revenues were $194.2 million, down 11% from $218.7 million for the same period last year and up 1% from $191.6 million in the prior quarter.
- Gross profit margin was 29.1%, up 4.2% from 24.9% for the same period last year. This increase was due principally to favorable cost underruns on several projects and improved product management.
- Loss before income taxes was $9.0 million, compared to $7.6 million for the same period last year and $14.2 million in the prior quarter.
- Provision for income taxes was $2.4 million, compared to a benefit from income taxes of $1.5 million for the same period last year and compared to a benefit from income taxes of $4.5 million in the prior quarter. Included in the current quarter tax provision is a $5.2 million valuation allowance on foreign tax credits and state and foreign net operating losses.
- Net loss was $11.4 million, compared to $6.1 million for the same period last year and $9.7 million in the prior quarter.
- Diluted loss per share was $0.75, compared to $0.40 for the same period last year and $0.65 in the prior quarter.
- Operating net loss* was $3.4 million, compared to operating net income* of $4.7 million for the same period last year and compared to operating net loss* of $5.0 million in the prior quarter.
- Operating EPS* was $(0.23), compared to $0.31 for the same period last year and $(0.33) in the prior quarter.
- Cash flow provided by operating activities was $0.6 million, compared to $4.8 million for the same period last year and compared to a cash flow usage of $16.3 million in the prior quarter.
- Revenues were $385.8 million, down 12% from $437.2 million for the same period last year.
- Loss before income taxes was $23.2 million, compared to $5.8 million for the same period last year.
- Benefit from income taxes was $2.1 million, compared to a provision for income taxes of $0.8 million for the same period last year.
- Net loss was $21.1 million, compared to $6.6 million for the same period last year.
- Diluted loss per share was $1.40, compared to $0.44 for the same period last year.
- Operating net loss* was $8.4 million, compared to operating net income of $6.8 million for the same period last year.
- Operating EPS* was $(0.56), compared to $0.45 for the same period last year.
- Cash flow used in operating activities was $15.6 million, compared to cash flow provided by operating activities of $15.7 million for the same period last year.
E.C. Sykes, President and CEO of Black Box said, "I am pleased that we were able to meet and in certain areas beat the expectations we set out on our last earnings call coming off of a very tough first quarter. Our teams did not allow those distractions to prevent them from continuing on our transformational path.” Mr. Sykes continued, “I am encouraged by the energy and enthusiasm we are seeing in our new strategy embracing the Intelligent Digital Edge. While we have more work to do, it is clear to me that we have the foundation of a winning plan.”
Earnings Conference Call
The Company will conduct a conference call beginning at 5:00 p.m. Eastern Time today, October 31, 2017. E.C. Sykes, President and Chief Executive Officer, will host the call. To listen only to the live webcast, access the event at http://investor.blackbox.com/events.cfm. To participate in the teleconference, dial 877-303-3145 (USA) or 253-237-1194 (International) approximately 15 minutes prior to the starting time and ask to be connected to conference 3197509. A replay of the audio webcast will be available at http://investor.blackbox.com/events.cfm for a limited period of time.
About Black Box
Black Box is a leading digital solutions provider dedicated to helping customers design, build, manage and secure their IT infrastructure. Black Box delivers high-value products and services through its global presence and 3,351 team members. To learn more, visit the Black Box Web site at http://www.blackbox.com.
Black Box® and the Double Diamond logo are registered trademarks of BB Technologies, Inc.
For more details, view the official investor press release.
For Investor Relations Inquiries:
Black Box Corporation
David J. Russo
Senior Vice President and Chief Financial Officer
Phone: (724) 873-6788
Any forward-looking statements contained in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of the date of this release. You can identify these forward-looking statements by the fact that they use words such as "should," "anticipate," "estimate," "approximate," "expect," "target," "may," "will," "project," "intend," "plan," "believe" and other words of similar meaning and expression in connection with any discussion of future operating or financial performance. One can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. Although it is not possible to predict or identify all risk factors, they may include, among others, levels of business activity and operating expenses, liquidity, expenses relating to compliance requirements, cash flows, global economic and business conditions, successful integration of acquisitions, the timing, benefits and costs of restructuring programs and other initiatives, such as our enterprise resource planning system initiatives, successful marketing of the Company's product and services offerings, successful implementation of the Company's integration initiatives, successful implementation of the Company's government contracting programs, competition, changes in foreign, political and economic conditions, fluctuating foreign currencies compared to the U.S. dollar, rapid changes in technologies, client preferences, the Company's arrangements with suppliers of voice equipment and technology, government budgetary constraints and various other matters, many of which are beyond the Company's control. Additional risk factors are included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2017 and our quarterly reports on Form 10-Q for Fiscal 2018. We can give no assurance that any goal, plan or target set forth in forward-looking statements will be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments and caution you not to unduly rely on any such forward-looking statements.