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EX - 99.12 agys - ex991_6.htm EX - 99.1 Exhibit 99.1 Agilysys AGILYSYS REPORTS FISCAL 2021 THIRD QUARTER REVENUE OF $ 36.7M Reports Record Recurring Revenue of $ 22.8M Inclusive of Subscription Revenue Growth of 18 % Reports Positive Adjusted EBITDA of $ 7.6M Quarterly Free Cash Flow of $ 7.8M and Cash Balance Increase of $ 6.9M to $ 92.6M Alpharetta , GA – January 26 , 2021 - Agilysys , Inc. ( Nasdaq : AGYS ) , a global provider of next - generation hospitality software solutions and services , today reported operating results for its fiscal 2021 third quarter and period ended December 31 , 2020 . Summary of Fiscal 2021 Third Quarter Financial Results • • Total net revenue was $ 36.7 million , compared to total net revenue of $ 42.0 million in the comparable prior - year period for a 13 % decrease in revenue . Recurring revenues ( which are comprised of support , maintenance and subscription services ) were $ 22.8 million , or 62.3 % of total net revenue , compared to $ 21.0 million , or 49.9 % of total net revenue , for the same period in fiscal 2020. Subscription revenues increased 18.1 % year over year and comprised 40.9 % of total recurring revenues , compared to 37.7 % of total recurring revenues in the third quarter of fiscal 2020 . Gross margin was 66.0 % in the fiscal 2021 third quarter , compared to 50.2 % in the comparable prior - year period . Net ( loss ) attributable to common shareholders in the fiscal 2021 third quarter was $ ( 2.5 ) million , or $ ( 0.11 ) per diluted share compared to a net loss of $ ( 2.6 ) million , or $ ( 0.11 ) per diluted share , in the comparable prior - year period . Adjusted EBITDA ( non - GAAP ) was $ 7.6 million , compared to $ 3.2 million in the comparable prior - year period ( see reconciliation below ) . Adjusted diluted EPS ( non - GAAP ) was $ 0.23 per share compared to $ 0.05 per share in the comparable prior - year period . Free cash flow ( non - GAAP ) in the fiscal 2021 third quarter was $ 7.8 million , compared to free cash flow of $ 3.0 million in the fiscal 2020 third quarter ( see reconciliation below ) . Ending cash balance was $ 92.6 million , compared to ending cash balance of $ 46.7 million as of fiscal 2020 year - end . Ramesh Srinivasan , President and CEO of Agilysys , commented , " We are pleased with our continuing good progress in improving various business fundamentals . Simultaneously , we are setting ourselves up well for renewed growth when the hospitality industry shifts to the anticipated re - opening and recovery phase , especially with respect to increasing the pace of product innovation and levels of customer service . Our balance sheet strengthened further during the quarter with strong cash collections . " " The current hospitality industry business headwinds caused by the pandemic remain challenging . There is still significant uncertainty in the industry about when the expected recovery will become a reality . We expect the business environment to remain unchanged during the immediate future . Q4 fiscal 2021 revenue is expected to remain sequentially flat compared to Q3 , with Adjusted EBITDA reducing to $ 7.0M , mainly due to further increases in R & D resource strength . We should be discontinuing the current sequential quarter guidance cadence we adopted during fiscal 2021 due to the extraordinary business circumstances and return to our annual guidance practice beginning fiscal 2022. " " “ During the past 12 months we have significantly increased our range of software products which are cloud native and available to be implemented on a subscription recurring revenue basis . That should help us meet the increased and changing technology demands of the industry on the other side of this pandemic . We remain bullish about the future of the hospitality industry and our improving ability to serve it well . " Fiscal 2021 Outlook Agilysys continues to monitor the impact of COVID - 19 on the hospitality industry with our primary focus being the safety of our employees and customers as we manage through these unprecedented times . We are expecting Q4 fiscal 2021 revenue to remain sequentially flat over Q3 fiscal 2021 results with an Adjusted EBITDA of approximately $ 7.0 million for the same period . We expect