(RTTNews) - Solera Holdings, Inc. (SLH: News ), a provider of software and services to auto insurance industry, Tuesday reported a sharp increase in first quarter profit, which also surpassed analysts' estimate, driven mainly by a 53.5% surge in revenue from automotive recycling and other customers. The company also raised its outlook for fiscal 2010.

For the three-month period, net income attributable to Solera Holdings rose to $19.98 million or $0.29 per share from $14.35 million or $0.22 per share in the comparable quarter a year ago.

Adjusted net income was $34.5 million, up from last year's $28.24 million. On an adjusted basis, earnings per share increased to $0.50 from $0.44 in the prior year. On average, four analysts polled by Thomson Reuters expected the company to report profit of $0.43 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the three-month period moved up to $150.77 million from $142.99 million in earlier year. Analysts anticipated revenues of $145.13 million for the quarter.

Segment-wise, revenue from automotive recycling and other customers surged 53.5% to $22.2 million from the preceding year. EMEA revenues jumped 9.7% to $99.1 million from $90.3 million in the prior year quarter. Revenue from independent assessors increased 3% to $15.0 million from the previous year.

Meanwhile, revenue from Americas dropped 1.9% to $51.7 million from the previous year. Revenue from insurance company customers decreased 1.2% to $59.7 million, compared to the same quarter last year.
Tony Aquila, founder, chairman and CEO of Solera Holdings, said, "Our continued discipline on eliminating waste and focus on global operations is helping us drive better efficiencies in the business as we achieved an Adjusted EBITDA margin of 41.2% - up 310 basis points year-over-year."

In addition, Solera Holdings announced that the Audit Committee of the Board of Directors has approved a quarterly cash dividend of $0.0625 per share of outstanding common stock and per outstanding restricted stock unit. The dividend will be payable on December 21, 2009 to stockholders and restricted stock unit holders of record at the close of business on November 23, 2009, said the company.

Looking forward to 2010, the company raised its net income guidance to a range of $62 million-$71 million from the prior range of $49 million-$55 million.

Solera Holdings also lifted adjusted earnings per share forecast to a range $1.89 to $1.97 per share from the prior range of $1.76 to $1.83 per share. Analysts estimate net income of $1.82 per share for the year.

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