Monotype Imaging Holdings Inc. reported unaudited consolidated financial results for the third quarter and nine months ended September 30, 2017. For the quarter, the company's revenue was $60,507,000 against $52,229,000 a year ago. Income before provision for income taxes was $3,998,000 against $5,132,000 a year ago. Net income available to common shareholders-basic was $1,196,000 or $0.03 per basic share against $2,341,000 or $0.06 per basic share a year ago. Net income available to common shareholders-diluted was $1,195,000 or $0.03 per diluted share against $2,340,000 or $0.06 per diluted share a year ago. Net adjusted EBITDA was $15,917,000 against $15,481,000 a year ago. Non-GAAP net income was $4,878,000 or $0.12 per diluted share against $7,085,000 or $0.18 per diluted share a year ago. Income from operations was $6,141,000 against $5,755,000 a year ago. Cash flow from operations was $8.9 million as compared to $3.1 million in the same period last year and $6.8 million in second quarter of 2017. The year-over-year improvement in operating cash flow was primarily the result of a negative $9 million impact of restricted cash last year and higher non-GAAP net adjusted EBITDA. Pro Forma non-GAAP revenue for the quarter was $61.0 million.

For the nine months, the company's revenue was $170,773,000 against $150,804,000 a year ago. Income before provision for income taxes was $1,299,000 against $24,107,000 a year ago. Net loss available to common shareholders-basic was $310,000 or $0.01 per basic share against income of $14,436,000 or $0.36 per basic share a year ago. Net loss available to common shareholders-diluted was $310,000 or $0.01 per diluted share against income of $13,983,000 or $0.36 per diluted share a year ago. Net adjusted EBITDA was $36,999,000 against $49,187,000 a year ago. Non-GAAP net income was $7,878,000 or $0.20 per diluted share against $27,877,000 or $0.70 per diluted share a year ago. Income from operations was $8,213,000 against $25,135,000 a year ago.

For the fourth quarter of 2017, the company expects revenue in the range of $60.2 million to $64.2 million; Non-GAAP net adjusted EBITDA to be in the range of $12.5 million to $15.5 million; GAAP earnings per diluted share to be in the range of $0.00 to $0.02; Non-GAAP earnings per diluted share to be range of $0.08 to $0.10; Pro Forma revenue range to be $60.5 to $64.5; Pro Forma non-GAAP net adjusted EBITDA range to be $12.8 to $15.8; GAAP net income range in the range of $100,000 to $800,000; Interest expense, net of $800,000; Income from operations in the range of $2,600,000 to $5,600,000; Depreciation and amortization of $3,100,000; and Non-GAAP net income in the range of $2,900,000 to $3,600,000.

For the full year 2017, the company expects revenue in the range of $231.0 million to $235.0 million; Non-GAAP net adjusted EBITDA to be in the range of $49.5 million to $52.5 million; GAAP earnings per diluted share to be in the range of $0.00 to $0.01; Non-GAAP earnings per diluted share to be range of $0.19 to $0.20; Pro Forma revenue range to be $234.3 to $238.3; Pro Forma non-GAAP net adjusted EBITDA range to be $52.8 to $55.8; GAAP net income range in the range of $100,000 to $300,000; Interest expense, net of $2,900,000; Income from operations in the range of $10,700,000 to $13,700,000; Depreciation and amortization of $12,500,000; and Non-GAAP net income in the range of $7,500,000 to $7,700,000.