(RTTNews) - Thursday, SXC Health Solutions Corp. (SXCI: News , SXC) reported an increase in profit for the third quarter on higher revenues attributable to new customer wins. Looking ahead, the company raised its outlook for the full year.

SXC Health's GAAP net income for the quarter increased to US$11.2 million or US$0.43 per share, from US$3.5 million, or US$0.15 per share during the comparable period year-ago. Adjusted net-income for the quarter increased to US$12.24 million or US$0.47 per share from US$5.78 million or US$0.24 per share in the prior year period.

On average, sixteen analysts polled by Thomson Reuters estimated earnings of US$0.36 per share for the quarter. Analysts' estimates typically exclude special items.

The Illinois-based company's total revenue for the quarter increased to US$383.52 million from US$318.10 million in the year-ago period. Fifteen Street analysts estimated revenues of US$370.48 million for the quarter.

Segment-wise revenue from PBM increased to US$357.47 million from US$297.17 million year-ago, while the HCIT segment's revenue increased to $26.05 million from $20.92 million year-ago.
The total cost of revenue for the quarter increased to US$335.84 million from US$283.21 million in the year-ago period. Product development costs increased to US$2.83 million from US$2.48 million, and selling, general and administrative expenses increased to US$22.15 million from US$21.86 million. Depreciation of property and equipment increased to US$1.46 million from US$1.22 million in the prior year period. Expenses related to amortization of intangible assets declined to US$2.23 million from US$3.44 million a year-ago.

"Solid execution on our growth strategies combined with sound fundamentals in our markets led to another strong quarter and an increase to our key guidance targets," said Mark Thierer, president and chief executive officer of SXC. "In addition to new customer wins, we are driving both top-line and bottom-line growth by increasing the mail-order penetration in our customer base and converting a number of Health Care IT clients to a broader platform of our PBM services," he added.

For the year, the company estimates GAAP earnings per share including all transaction-related amortization to be in the range of US$1.57 - US$1.62, compared with the prior estimate of US$1.42 - US$1.50 per share. On an non-GAAP basis, the company anticipates earning in the range of US$1.76 - US$1.81 per share from prior estimates in the range of US$1.62 - US$1.70 per share. The company expects revenue to range between US$1.375 billion - US$1.425 billion, as against prior estimates of US$1.35 billion - US$1.4 billion.

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