ARC reports decent first quarter
Restructuring at the end of 2012 paid off for ARC, as the company improved its gross margin by 1.6 percentage points during the first quarter of 2013, compared to the same period in 2012.
The company, which reported Q1 results last week, reported $11.9 million cash from operations during the quarter, and reported net income of $400,000. During Q1 of 2012, the company reported a $4.9 million loss.
"We posted solid sales in the first quarter of 2013 largely due to our continuing growth in MPS, and we saw significant improvement in gross margin thanks to the aggressive restructuring efforts we made in the fourth quarter of 2012," said K. "Suri" Suriyakumar, chairman, president and CEO of ARC Document Solutions in a press release. "Management remains focused on selling our new portfolio of services within the broader context of document solutions. Given current conditions in our traditional market, this strategy is already paying dividends as we continue to make headway with our larger MPS customers, and garner interest in archiving and information management."
"We maintain a cautiously optimistic view of the AEC market," continued Mr. Suriyakumar. "While homebuilding activity is taking the headlines, the market for larger non-residential construction projects remains very early in its recovery. In both cases, we continue to see an increased use of technology for managing and distributing documents."
"The benefit of our restructuring measures taken in the fourth quarter are evident in our expanded gross margin in first quarter of this year and we continue to execute on opportunities to refine our cost base and further expand our margins," said John Toth, ARC Document Solution's chief financial officer, in that press release. "Our balance sheet remains strong and our debt ratios continue to improve."
You can read the entire press release here.