ARC leaders Suri Suriyakumar, Dilo Wijesuriya, and Jorge Avalos discussed the company's most recent results in an analyst's call this week.
Drop in Sales
Regarding the company's drop in sales, Suriyakumar said: "Sales were down approximately 8% year-over-year. This is largely driven by three elements. The difficulties faced by large engineering companies and a large contract in the sector that didn’t renew in 2015; second, shedding high volume, but low margin color work in the United Kingdom that came to us from a previous acquisition. And finally, a one-time sale of equipment in China last year during the second quarter. On the other hand, our gross margin was healthy coming in above 35%."
Future of Skysite
Regarding ARC's technology, Suriyakumar said: "We have added new and compelling features in the cloud-based project information management and the new interface and new functionality in our facilities information management solutions, which is generating strong interest from our customer base. Along with the significant upgrade to our SKYSITE platform, we expect the technology progress we have made during the second quarter to significantly expand our overall addressable market. We are making great strides in the development of our new offering and they are the future of this company."
Regional Managed Print Services
Regarding FMs, Wijesuriya said: "Moving on to managed print services, during the second quarter, we acquired several large regional managed print service customers in North America. Our focus on developing higher volume sales through our regional sales force continues to gain traction and is helping to balance the slower sales cycle of larger national and global customers. Overall, we added 520 managed print services engagements since the second quarter of last year."
Much more detail is available here: http://seekingalpha.com/article/3994886-arc-document-solutions-arc-ceo-suri-suriyakumar-q2-2016-results-earnings-call-transcript?page=1