Positive ARI Network Services, Inc. (NASDAQ:ARIS)
ARI Network Services, Inc. (NASDAQ:ARIS) has announced certain unaudited preliminary financial results for the third quarter ended April 30, 2017. ARI Network Services is a provider of software tools, SaaS, and marketing services used by distributors, dealers, and manufacturers of Sell More Stuff!™.
While commenting on the results, ARI Network Services, Inc. (NASDAQ:ARIS) President and CEO Roy W. Olivier said the company delivered strong results in the third quarter. He noted that the company’s revenue increasing by 12%. The company has reported double digit EPS compared to last year. The company’s revenue is expected to range between $13.4 million and $13.5 million.
In addition, ARI Network Services, Inc. (NASDAQ:ARIS) expects to record fully diluted GAAP earnings per share between $0.06 and $0.08 compared to the $0.03 that was reported in the third quarter of last year. The company concluded its tax study for the quarter and I projecting development and tax research credits amounting to between $450,000 and $650,000 or $0.02 and $0.04 on every share. The company is projecting cash from its operations to increase between 20%-23% and fall between $3.1 million to $3.2 million.
These results are provisional and subject to completion of the company’s quarterly closing and review procedures. In other news, ARI Network Services, Inc. (NASDAQ:ARIS) announced entering into a definitive agreement that will see the company acquired by True Wind Capital Management, LLC’s affiliate. True Wind Capital Management is an equity firm based in San Francisco that specializes in investing in major technology companies.
Under the agreement, shareholders of ARI Network Services, Inc. (NASDAQ:ARIS) will be entitled to $7.10 in cash for every share of ARI common stock they own. The price represents a premium of around 33% of the company’s average closing prices of 60 trading days up to June 20, 2017. The whole transaction will be settled in cash and will represent an enterprise value of around $140 million. The transaction has been unanimously approved by the Board of Directors of ARI.
While commenting on the transaction Olivier said they are pleased with the True Wind partnership. He added that the transaction is an outcome of a long process and they are optimistic that it will be valuable and beneficial to the shareholders. Olivier said the
investment made by ARI Network Services, Inc. (NASDAQ:ARIS) will go toward accelerating the company’s speed of innovation as well as put it in a better position to capitalize on future growth.
ARI Network Services, Inc. (NASDAQ:ARIS) shares recorded a 0.43% or $0.03 gain to close the Tuesday session at $6.99
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.