Identity protection solutions provider L-1 Identity Solutions, Inc. (ID), 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.
Revenue for nine months was $490.8 million, up 18% from $415.4 million in the same period last year.
Looking ahead to the fourth quarter, L-1 expects earnings in the range of $0.04 per share - $0.06 per share. Excluding stock based compensation, earnings are expected to be in the range of $0.08 per share - $0.10 per share. The Street currently expects the company to report earnings of $0.09 per share for the quarter.
Revenue for the fourth quarter are projected in the range of between $180.0 million - $190.0 million, while analysts currently anticipate revenues of $210.60 million for the quarter.
For fiscal year 2009, L-1 now expects earnings to be within a range of $0.06 per share - $0.08 per share, excluding charges relating to Registered Traveler , financing costs and adoption of new accounting standards. Earnings, excluding stock based compensation are forecast in the range of $0.19 per share - $0.21 per share. Previously, the company projected earnings exclusive of certain items to be $0.06 - $0.12 per share and earnings excluding stock based compensation in the range of $0.17 - $0.24 per share.
Analysts currently expect the company to report earnings of $0.05 per share for the full year.
The company now expects full year revenues of $670 million - $680 million, down from the previously anticipated range of $700.0 million - $725.0 million. The decrease is attributable to slower implementation of State DMV and facial recognition projects along with lower than expected volume on the TWIC program. Analysts currently estimate revenues of $706.84 million for the full year.
L-1 also expects organic growth to be around 20% for the second half of 2009 and nearly 11% for the full year.
For fiscal year 2010, the company's preliminary expectations for revenue is between $750 million and $775 million, and organic growth of 10% - 15%. Earnings are forecast within a range of $0.02 per share- $0.09 per share and earnings , excluding stock based compensation is anticipated to be within a range of $0.18 per share - $0.25 per share. Seven analysts estimate earnings of $0.22 per share on revenues of $811.73 million for the year 2010.
ID is currently trading at $8.03, down $0.29 or 4.59%, on a volume of 1.14 million shares on the NYSE.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.