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Although this is not great news, I would like to point out that a major piece of the revenue shortfall was resale revenue, which is low margin, and we have conscientiously reduced over the last few years to limit our dependency on this type of revenue. So, in the short term, the underrun and resale revenue impacts bottom-line profit.
Depreciation and amortization was flat year to year as a percent of revenue, down $17 million, reflecting continued capital discipline. Modern Workplace organic revenue declined year to year in the mid-teens impacted by resale revenue, which was down 30%. And with the resale, it will be negative double digits, low double digits.
year-to-year decline, 160 basis points came from a reduced level of low-margin resale revenues, which was in line with our expectations. Depreciation and amortization was down $7 million compared to the prior year. The second factor is the decline in resale revenues which drove 41% of our second quarter decrease in Cloud and ITO.
These gains were partially offset by 40 basis points from higher depreciation and amortization related to investments in production capacity, 40 basis points from higher customization costs given the continued growth of our custom offerings. Obviously, some of the product resale affected mix this year. Thanks for taking my question.
Professional homebuilders and real estate developers are excluded from being forced to comply with the marketing restrictions Clear Cooperation places on individual homeowners in the resale market, which puts individual homeowners at a disadvantage. Free cash flow during the third quarter was positive $32.8 million in Q3 of last year.
million annual resale transactions in time. million in the same period a year ago and includes noncash charges such as 36 million of noncash stock-based compensation expense and 22 million of depreciation and amortization expense. There will be an event an eventual return to a mid-cycle range of 5.3 million to 5.5
The outlook for capital investment, depreciation and amortization, and R&D expenditures for FY '25 remains unchanged. So, as for the resale, in Mexico, for example, we had a confusion in logistics. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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