Tuesday, Retalix Ltd. (RTLX), a provider of software solutions for retailers and distributors, reported an increase in profit for the second quarter, as improved operating efficiencies and a financial income largely offset the decline in revenues.
Net profit attributable to shareholders was $4.90 million or $0.24 per share, compared with $1.48 million or $0.07 per share in the year-ago period.
On an adjusted basis, net income for the second quarter was $6.1 million or $0.30 per share, compared with $3.18 million or $0.15 per share in the prior year period.
Revenues for the quarter were $48.92 million, compared with $59.28 million a year ago.
Total operating expenses were reduced to $17.67 million from $21.40 million in the year-ago period. Financing income for the second quarter was $3.7 million compared with $0.6 million in the second quarter of 2008.
According to Hugo Goldman, the company's chief financial officer, "Second quarter operating expenses were more than 17% lower than the operating expenses in the year-ago second quarter, helping us to maintain strong operating margins this quarter."
Goldman added that the financial income for the quarter was due to currency shifts that improved the valuation of the forward currency transactions Retalix entered into at the beginning of the year to hedge its currency exposure in 2009, and translation benefits on the value of its non-dollar net assets due to the weakening of the dollar in the reported quarter.
For the six months ended June 30, 2009, net profit attributable to Retalix was $5.64 million or $0.28 per share, compared with $0.954 million or $0.04 per share in the year-ago period. Year-to-date non-GAAP net income was $7.86 million or $0.39 per share, compared with $4.36 million or $0.22 per share in the prior year period.
Year-to-date revenues were $95.85 million, compared with $113.21 million a year ago.
Looking forward, Retalix continues to expect fiscal 2009 net income to be between $1.0 million and $6.0 million, non-GAAP net income to be between $5.0 million and $11.0 million, and revenues to be between $180.0 million and $200.0 million.
RTLX is currently trading on Nasdaq at $8.978, down $0.222 or 2.41%.
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