LONDON, UK / ACCESSWIRE / December 27, 2017 / Active-Investors.com has just released a free earnings report on Switch, Inc. (NYSE: SWCH). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SWCH. The Company posted its financial results on November 13, 2017, for the third quarter fiscal 2017. The technology infrastructure company's revenue and adjusted EPS surpassed analysts' expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Switch most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For three months ended September 30, 2017, Switch's revenue increased 19.6% to $97.69 million from $81.67 million in Q3 FY16. The increase was due to increase in the sale of services to both existing customers and new customers. The Company's revenue surpassed analysts' expectations of $95.8 million.
During Q3 FY17, Switch's gross profit increased 35.5% to $46.95 million from $34.64 million in the same period last year. For the reported quarter, the Company's gross margin increased 570 basis points to 48.1% of revenue from 42.4% of revenue in Q3 FY16.
During Q3 FY17, Switch's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 43.8% to $49.74 million from $34.59 million in the same period last year. For the reported quarter, the Company's adjusted EBITDA margin increased 850 basis points to 50.9% of revenue from 42.4% of revenue in Q3 FY16.
During Q3 FY17, Switch's operating income increased 55.1% to $25.45 million from $16.41 million in the same period last year. For the reported quarter, the Company's operating margin increased 600 basis points to 26.1% of revenue from 20.1% of revenue in Q3 FY16.
For the reported quarter, Switch's net income increased 3.5% to $16.49 million on a y-o-y basis from $15.93 million in Q3 FY16. During Q3 FY17, the Company's diluted EPS was $0.08, on par with $0.08 in the same period last year. Diluted EPS surpassed analysts' expectations of $0.07.
Balance Sheet
As on September 30, 2017, Switch's cash decreased 64.8% to $7.99 million from $22.71 million on December 31, 2016. For the reported quarter, the Company's net long-term debt increased 78.9% to $818.87 million from $457.74 million in Q4 FY16.
For the reported quarter, the Company's net accounts receivable increased 50.4% to $13.73 million from $9.13 million in Q4 FY16. For the reported quarter, the Company's accounts payable increased 1075.9% to $19.52 million from $1.66 million in the fourth quarter of 2016.
During Q3 FY17, the US Patent and Trademark Office allowed three more patents for Switch's innovative technology, including a patent for Switch's revolutionary Hot Aisle Containment Chimney Pod Technology known as the T-SCIF.
During Q3 FY17, the Company announced a patent licensing agreement in the United States with Schneider Electric.
On October 11, 2017, Switch completed its initial public offering of equity, raising gross proceeds of $611 million, and net proceeds of $577 million after underwriting discounts.
On December 07, 2017, the Company's Board of Directors declared a cash dividend of $0.014 per share of Switch's Class A common stock payable on December 29, 2017, to all stockholders of record as of the close of business on December 18, 2017.
Outlook
For FY17, the Company expects revenue to be in the range of $372 million to 380 million and adjusted EBITDA to be in the range of $190 million to $195 million.
Stock Performance Snapshot
December 26, 2017 - At Tuesday's closing bell, Switch's stock dropped 1.44%, ending the trading session at $17.84.
Volume traded for the day: 1.34 million shares.
After yesterday's close, Switch's market cap was at $4.37 billion.
Price to Earnings (P/E) ratio was at 125.63.
The stock is part of the Technology sector, categorized under the Information Technology Services industry.Active-Investors:
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