Agilysys Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended December 31, 2013. For the quarter, the company reported total net revenues of USD 26.007 million compared to USD 28.190 million a year ago. Operating loss was USD 3.212 million compared to USD 1.712 million a year ago. Loss before income taxes was USD 3.232 million compared to USD 1.916 million a year ago. Loss from continuing operations was USD 2.078 million compared to USD 1.103 million a year ago. Net loss was USD 2.662 million compared to net income of USD 0.516 million a year ago. Basic and diluted loss per share from continuing operations was USD 0.09 compared to USD 0.05 a year ago. Basic and diluted loss per share was USD 0.12 compared to basic and diluted income per share of USD 0.02 a year ago. Adjusted operating income from continuing operations was USD 0.319 million compared to adjusted operating loss from continuing operations of USD 0.498 million a year ago. Adjusted income from continuing operations was USD 0.248 million compared to adjusted loss from continuing operations of USD 0.752 million a year ago. Total net revenue for the company's third fiscal quarter of 2014 decreased 8%. The year-over-year decline in third quarter revenue was driven primarily by a decrease in sales of lower margin remarketed products. The third fiscal quarter of 2013 included USD 3,200,000 of above-average remarketed products revenue, which did not repeat in 2014.

For the nine months, the company reported total net revenues of USD 77.086 million compared to USD 74.811 million a year ago. Operating loss was USD 4.052 million compared to USD 6.724 million a year ago. Loss before income taxes was USD 4.105 million compared to USD 7.148 million a year ago. Loss from continuing operations was USD 2.345 million compared to USD 5.173 million a year ago. Net income was USD 19.106 million compared to net loss of USD 1.628 million a year ago. Basic and diluted loss per share from continuing operations was USD 0.11 compared to USD 0.24 a year ago. Basic and diluted income per share was USD 0.86 compared to basic and diluted loss per share of USD 0.07 a year ago. Net cash used in operating activities were USD 8.521 million compared to USD 17.388 million a year ago. Capital expenditures were USD 3.235 million compared to USD 1.530 million a year ago. Adjusted operating income from continuing operations was USD 2.593 million compared to adjusted operating loss from continuing operations of USD 1.508 million a year ago. Adjusted income from continuing operations was USD 2.430 million compared to adjusted loss from continuing operations of USD 2.045 million a year ago.

The company reported asset impairment related charges of USD 0.309 million for the third quarter of 2013.

The company provided earnings guidance for the fourth quarter and fiscal year 2014. For the quarter, the company's expects gross margins for the fourth quarter of fiscal 2014 to remain close to the historical levels of around 60%, as the company continue to place into service certain capitalized software assets associated with recent and projected product releases.

For the year, the company announced that despite the optimism and the continued improvements across many aspects of the company's business, the company is revising the revenue outlook, primarily as a result of the timing associated with certain customer-driven contracted opportunities, where revenue cannot be fully recognized in the period in which the bookings occurred. The company now expects the reported growth rate to be in line with, or slightly below, the expected annual growth for the industry of 5% to 7%. However, the company is reaffirming expectations of generating positive adjusted operating income from continuing operations for fiscal 2014. And on a sequential basis, the company saw expected improvement in the adjusted cash used in operations, showing positive operating cash flow for the third quarter of fiscal 2014, keeping the company on track to achieve full year breakeven to slightly positive adjusted operating cash flows in fiscal 2014.