Quest Software Inc. (QSFT) Monday said its profit for the first quarter dropped from a year ago, on lower revenues reflecting weak license fees. On a non-GAAP basis, Quest, however, recorded a small decline.
First quarter net income of Quest Software decreased to $9.93 million or $0.10 per share, compared to $13.33 million or $0.13 per share in the same quarter a year ago.
On a non-GAAP basis, net income was $21.5 million or $0.22 per share, compared to $22.2 million or $0.21 per share in the same period last year.
Non-GAAP results exclude the after-tax effects of amortization of intangible assets acquired with business combinations, share-based compensation expenses and other items.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.23 per share. Analysts' estimates typically exclude special items.
Revenues for the quarter fell 4.2% to $165.6 million from $172.8 million in the year-earlier quarter. Thirteen Wall Street analysts expected revenues of $179.32 million.
Revenues from licenses decreased 21.2% to $62.37 million, while that from services improved to $103.23 million from $93.64 million in the corresponding quarter last year.
Operating margins increased to 11.3% from 5.5% during the comparable period of 2008.
Income from operations was $18.69 million, compared to $9.51 million in the prior-year quarter. Total operating expenses declined to $126.16 million from $140.87 million in the preceding quarter last year.
QSFT closed Monday's regular trading at $13.95, down $0.49 or 3.39%, on a volume of 1.23 million shares.
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