Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Quest Software Q4 Earnings Miss Estimate; CEO Garn To Step Down On Health Issues

2/14/2012 8:32 PM ET

Software solutions provider Quest Software, Inc. (QSFT: Quote) reported Tuesday a profit for the fourth quarter that more than halved from last year, reflecting significant income tax provisions. This was despite improved margins and revenue growth.

The company's stock lost over 2 percent in extended trading as adjusted earnings per share missed analysts' expectations by a penny. Revenues topped their estimates by a whisker.

"Q4 was a tougher quarter than we typically experience, but we are happy to announce results in line with our revised guidance," President and CEO Doug Garn said in a statement.

The company also announced that Garn is stepping down from his role as president and CEO, and said Executive Chairman Vinny Smith will return as CEO. Smith also remains as chairman, and Garn is named vice chairman, effective immediately.

The company noted that Garn has been discussing his need to step back from his role given pressing health issues. He has agreed to be the vice chairman to serve Quest with his knowledge, enthusiasm and passion for the company.

Smith previously served as CEO from 1997 to 2008, and has served as executive chairman since October 2008. He also became chairman of the Board in 1998 after joining Quest as an investor and director in 1995.

Prior to joining Quest, Smith co-founded and financed Patrol Software. Earlier, he served in the sales and marketing roles at enterprise software giant Oracle Corp. (ORCL).

The Aliso Viejo, California-based company reported net income of $12.6 million or $0.15 per share for the fourth quarter, sharply down from $37.1 million or $0.39 per share in the prior-year quarter.

Excluding special items, adjusted net income for the quarter declined to $42.6 million or $0.51 per share from $44.8 million or $0.47 per share in the year-ago quarter.

On average, eight analysts polled by Thomson Reuters expected earnings of $0.52 per share for the fourth quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 13.4 percent to $245.89 million from the same quarter last year, and topped eight Wall Street analysts' consensus estimate of $243.71 million by a whisker. Revenue growth reflected increases in both licenses and services segments.

Looking ahead to fiscal 2012, the company expects total revenue to grow in the range of 8.5 to 10 percent, implying revenues between $930.30 million and $943.16 million, based on revenues of $857.42 million reported for fiscal 2011. Street is currently looking for full-year 2012 revenues of $927.69 million.

QSFT closed Tuesday's regular trading session at $21.65, up $0.09 or 0.42% on a volume of 0.67 million shares. However, the stock lost $0.53 or 2.45% in after-hours trading.

Register
To receive FREE breaking news email alerts for Quest Software Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Chipmaker Advanced Micro Devices Inc. said Thursday after the markets closed that its first quarter loss narrowed from last year, helped by strong revenue growth in its graphics and visual solutions business. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. After trending higher over the past few sessions, stocks showed a lack of direction throughout the trading day on Thursday. The major averages spent the session bouncing back and forth across the unchanged line before ending the day mixed. While the major averages closed on opposite sides of the unchanged line, they all showed only modest moves. U.S. Secretary Of State John Kerry said Thursday that he and his counterparts from Russia, Ukraine and the European Union have reached an agreement on a preliminary plan for ending the ongoing crisis in Ukraine. Kerry was speaking at the end of the Ukraine contact group's first meeting, comprising the foreign ministers of Russia, Ukraine, the EU and the U.S., in the Swiss city of Geneva.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.