Double-Take Software net income falls in 3rd-quarter as software license sales slump
By APTuesday, October 27, 2009
Double-Take Software 3Q profit slides on sales
SOUTHBOROUGH, Mass. — Double-Take Software Inc. on Tuesday reported a decline in third-quarter profit as revenue from software licenses declined.
The company, which also provides data-recovery services, said it earned $1.6 million, or 7 cents per share, compared with $2.6 million, or 11 cents per share, a year earlier. Excluding stock-based compensation expenses, the company said it would have earned 12 cents per share in the latest period.
Revenue fell 11 percent to $21.3 million. Software sales dropped 20 percent, while services revenue slipped less than 1 percent.
Analysts expected the company to earn 10 cents per share, excluding one-time items, on sales of $21.4 million.
“The results were similar to our second quarter, which is what we expected. This signals to us that normalized buying patterns have returned,” said Dean Goodermote, chairman, CEO and president, in a statement.
Looking ahead, Double-Take forecast adjusted fourth-quarter earnings between 10 and 14 cents per share on sales of $22 million to $24 million. Analysts have estimated profit of 14 cents per share on sales of $23.5 million, on average.
Shares fell 9 cents to close earlier at $9.26, but in extended trading after the report was released, they rose 14 cents to $9.40.
