Ameri100 Reports Positive Adjusted EBITDA for the Second Quarter

Data Investing

AMERI Holdings (NASDAQ:AMRH), a specialized cloud, digital and enterprise services company reported its unaudited financial results for the three months and six months ended June 30, 2018. The company posted revenue of US$11.1 million as compared to US$12.3 million while it posted gross profit of US$2.4 million as compared to US$2.3 million in the second …

AMERI Holdings (NASDAQ:AMRH), a specialized cloud, digital and enterprise services company reported its unaudited financial results for the three months and six months ended June 30, 2018.

The company posted revenue of US$11.1 million as compared to US$12.3 million while it posted gross profit of US$2.4 million as compared to US$2.3 million in the second quarter of 2017.

As quoted in the press release:

Second Quarter 2018 vs. Second Quarter 2017
Gross margin of 21.6% compared to 19.0%;
GAAP net (loss) of $(1.4) million compared to $(3.8) million;
(Loss) per share of $(0.07) compared to $(0.26); and
Adjusted EBITDA was $141,000 compared to $(603,000).
First Half of 2018 vs. First Half of 2017
Revenue of $22.1 million compared to $24.6 million;
Gross profit of $4.7 million compared to $5.6 million;
Gross margin of 21.4% compared to 22.9%;
GAAP net (loss) of $(3.5) million compared to $(5.0) million;
(Loss) per share of $(0.19) compared to $(0.35); and
Adjusted EBITDA was $30,000 compared to $231,000.
“Our second quarter results reflect solid solutions sales and operational execution that takes us across a critical threshold of achieving positive Adjusted EBITDA for both the quarter and for the first half of the year in-line with our profitability guidance,” stated Brent Kelton, Chief Executive Officer at Ameri100. “Gross margins increased by approximately 250 basis points year-over-year on lower revenue as we are deliberately shifting our sales towards high-margin solutions sales and de-emphasizing low-margin professional services revenue. As an example, during the quarter we secured wins in high-growth, high demand segments of the SAP services market, including our first healthcare sector win.
“Operationally, we reduced costs by approximately 25% as we continued to restructure and streamline our acquired entities in the quarter. Subsequent to the close of the quarter, we moved to deleverage our balance sheet and support our working capital needs through a private placement that gives us greater operational and financial flexibility with which to pursue solution sales growth.”
Concluded Mr. Kelton, “Looking ahead to the second-half of the fiscal year, with a more efficient cost structure, a services offering aligned with high growth segments of the SAP services market and a robust sales pipeline, we have a strong foundation for organic growth. With SAP migrations serving as a tailwind, and with a scalable platform and clean balance sheet, we are actively building a stable of target M&A opportunities to build scale in the fragmented SAP business services market and better realize the earnings power of our business model.”