(RTTNews) - Identity protection solutions provider L-1 Identity Solutions, Inc. (ID: News ), on Wednesday posted a net profit for the third quarter, compared to a loss in the same period last year, as revenues increased 12% from last year, reflecting improvements in the biometrics business and higher enrollment services volume. L-1 Identity provided guidance for the fourth quarter and said it now expects outlook for full year 2009 below its previous projections. The company also provided its preliminary outlook for full year 2010.

For the third quarter, the Stamford, Connecticut-based company posted net income of $1.37 million or $0.02 per share, compared to a net loss of $1.91 million or $0.02 per share in the year-ago quarter. Excluding stock-based compensation, the company reported net income of $4.6 million or $0.05 per share for the quarter.

On average, seven analysts polled by Thomson Reuters expected the company to earn $0.01 per share for the quarter. Analysts' estimate typically exclude one-time charges and gains.

Quarterly revenue increased to $172.53 million from $154.46 million in the same quarter last year. Street analysts' revenue estimate was $178.04 million for the quarter.

L-1 Identity Solution's organic growth in the quarter was around 9%, driven by enrollment services, HIIDE, software solutions, and government consulting services. However, revenue for the quarter was slightly lower than expectations due to lower revenue from the enterprise access and secure credentialing divisions.

Gross margin for the quarter expanded to around 32% from 31% last year, primarily from gains in biometric solutions sales, offset by an increase in revenues from lower margin enrollment and government consulting services.
Operating expenses as a percentage of revenue for the quarter contracted to 24% from 26% in the year earlier quarter.

Robert LaPenta, chairman, president and chief executive officer, L-1 Identity Solutions said, "Improvements in the biometrics business year-over-year and continued upward trend in enrollment services volume have significantly contributed to our financial performance this year and helped deliver a profitable third quarter to our shareholders."

L-1 Identity's backlog at September 30, 2009 was around $1.2 billion, compared to $1.0 billion at September 30, 2008. The total contract value including unexercised options is nearly $1.9 billion.

For the nine-month period, the company reported a net loss of $3.7 million or $0.04 per share, compared to a net loss of $2 million or $0.03 per share. Excluding stock-based compensation, net income was $6.2 million or $0.07 per share.

To receive FREE breaking news email alerts for L-1 IDENTITY SOLUTIONS and others in your portfolio

 1   2   Next Page