The logistics solutions provider Descartes Systems Group on Thursday reported fiscal first-half operating income of $21.2 million, growth of 17.8 percent on the same period in 2012.
Descartes Chief Executive Officer Art Mesher said the company is in the best position it’s ever been after achieving record revenue and cashflow in the second quarter.
The Waterloo, Ontario-based company has been profitable for 35 consecutive quarters, with Mesher saying its operating margin has surpassed projections, and it has cash to invest in further acquisitions.
Mesher was coy about where the company might invest.
“I don’t want to tip my hand to the places I’m playing right now,” he said. “I want our company to not be distracted by my playtime in sandboxes in other verticals. But we are all aware of great potential in other verticals. That’s where I’m spending my time. Stay tuned.”
Descartes’ revenue in the first half rose 19.5 percent to $72.2 million, while net profit dropped 11.7 percent to $4.5 million. The company’s fiscal first half ended July 31.
Corresponding figures for the second quarter were 12.3 percent growth in revenue to $38.2 million, and a 3.8 percent rise in operating income to $10.8 million.
Mesher stressed the company’s cash generating strength across its lines of business, which primarily include supply chain execution and global trade management.
“It’s difficult to measure yourselves in a bubble against companies that only measure sales growth,” he said, adding “it’s about how your grow cash, not sales growth.” - Eric Johnson