Software provider ACI Worldwide posts 51 percent jump in 4th-quarter earnings, shares soar
By APThursday, February 25, 2010
ACI Worldwide 4Q profit jumps 51 pct, shares climb
NEW YORK — ACI Worldwide Inc., which makes software for electronic payment systems, said Thursday that cost controls and higher revenue from software license and maintenance fees helped lift its fourth-quarter profit by 51 percent.
The results sent shares surging $1.65, or 10 percent, to close at $18.34.
ACI said it was able to tamp down most cost increases and significantly trimmed general and administrative expenses. Revenue climbed 15 percent to $125.9 million from $109.2 million, driven by increases in capacity, maintenance and on-demand revenues.
Net income rose to $19.6 million, or 57 cents per share, from $12.9 million, or 37 cents a share, a year earlier. The results topped expectations of analysts polled by Thomson Reuters who had forecast profit of 45 cents per share on revenue of $125 million.
For the year, ACI posted net income of $19.6 million, or 57 cents a share, up from $10.6 million, or 30 cents a share, in 2008. Revenue fell 3 percent to $405.8 million from $417.7 million a year earlier, mainly due to foreign exchange fluctuations.
Looking ahead, ACI forecast 2010 revenue of $418 million to $428 million, in line with analysts’ prediction of $421.8 million.
Thomas C. McCrohan, an analyst with Janney Capital Markets, maintained a “Neutral” rating on ACI shares because 40 percent of the company’s revenue forecast is based on new sales and other “less predictable” events.
“While the company is making solid strides on controlling costs, we remain Neutral due to the still large proportion of unpredictable revenues,” he wrote in a note to clients.
