“Our first quarter revenue results were consistent with our expectations across all geographic regions, and we continued to make good progress against our strategic initiatives,” said Robert Keane, president and CEO. “Our operating profitability this quarter was also in line with our expectations. With the first quarter behind us, we are focused on delivering against our holiday expectations during our second quarter, as well as continued improvement of our customer value proposition globally and our marketing execution in Europe.”
Revenue for the first quarter of fiscal year 2014 grew to $275.1 million, a 9% increase over revenue of $251.4 million reported in the same quarter a year ago. Gross margin (revenue minus the cost of revenue as a percent of total revenue) in the first quarter was 65.2%, up from 65.0% in the same quarter a year ago.
Operating income in the first quarter was $8.4 million, or 3.1% of revenue, and reflected an increase compared to operating income of $0.2 million, or 0.1 percent of revenue, in the same quarter a year ago.
Ernst Teunissen, executive vice president and chief financial officer, said, “This early in the fiscal year we are not updating our operational revenue outlook, but we are increasing our revenue guidance range to reflect recent currency movements. As described in August, we expect to deliver lower year-over-year revenue growth in Europe than in North America, primarily due to planned changes we are making in our business in Europe to improve our customer value proposition, marketing execution and profitability. Our earnings per share guidance is unchanged, and we remain confident in our ability to drive meaningful growth in our profit margins and earnings per share this year.”
For the full fiscal year ending June 30, 2014, the company expects revenue of approximately $1,250 million to $1,300 million, or 7% to 11% growth year over year in reported terms.