Box, Inc. (NYSE:BOX) Q1 2016 Earnings Conference Call - Final Transcript
Jun 10, 2015 • 05:00 pm ET
revenue was $992 million, with operating earnings per share of $1.67. We generated $46 million in cash flow from operations. And we continue to provide value to our shareholders through $7 million of stock repurchases and $6 million of dividend payments. In addition, earlier today, we announced a 10% increase in our quarterly dividend. This is the fifth year in a row that we've increased our dividend by 10% or more. We view this as a sign of port's confidence in our ability to continue generating positive cash flow from operations.
I'll ask Tim to give us a financial update, and then I'll come back with additional comments on the year or plan for fiscal 2016 and to take your questions.
Thank you, Mike. In the fourth quarter, we posted revenue of $245 million, a decrease of $8 million or 3% over last quarter, and an increase of $7 million or 3% over the prior year. In the fourth quarter North America services, specifically the commercial services business exceeded expectations due to accelerated project timelines in our wireless solution practice and higher than expected volume with the large managed services contract we have previously discussed.
Revenue in North America products and the International segments was lower than expected, primarily due to a lower than anticipated demand. Maintenance revenue, which is derived primarily from long term agreements with our services clients was $46 million or 19% of our revenue for the fourth quarter. The six month order backlog now stands at $169 million, consistent with last quarter. Current backlog reflects a 1% increase in commercial backlog, offset by an 8% decrease in federal backlog. The backlog was $183 million in the prior year.
Fiscal 2015 reported revenues increased by 2%. Excluding currency revenue increased by 3%. This was primarily due to growth in North America services of 4% and North America products of 3%. We attribute a portion of this growth to investments in the last two fiscal years in the Cisco and wireless solution practices and significant growth in the large managed services contract, all within North America services, and direct selling efforts and focused markets in North America products.
This growth was complemented by stabilization in our core services offering.
Gross Margin for the quarter was 31.2%, up from last quarters 30.3% and above the guidance we provided.
North America products' gross margin was higher than expected due to a favorable product mix and lower than expected revenues around large orders, which generally carry lower gross margins.
In the fourth quarter, SG&A was $70 million, which included $600,000 of facility restructuring, $3.5 million of severance expense, $800,000 of legal and tax fees in support of an international legal entity restructuring project and $800,000 of higher operating costs associated with variable compensation.
The facility restructuring and severance expenses mentioned will reduce our projected SG&A by an annual run rate of approximately $4 million.
Our adjusted operating income margin for the fourth quarter was 4.4%, down from last quarter's 5%.