Monday, technology provider for telecommunication industry Syniverse Holdings Inc. (SVR), reported a lower profit for the third quarter ended September 30, impacted by a 24.5% decline in revenue from technology interoperability services. Looking ahead, the company revised its earlier issued revenue and earnings guidance for the full year 2009. In after hours, the stock is trading down by more than 6%.
The Tampa, Florida-based company's net income attributable to the company was $17.74 million or $0.26 per share, down from $25.47 million or $0.37 per share in the same period last year. Adjusted net income decreased to $25.92 million or $0.38 per share from $31.86 million or $0.47 per share a year ago.
The adjustments include income tax provisions of $11.34 million, stock compensation costs of $2.27 million, acquisition expenses and transition expenses of $3.27 million and purchase accounting amortization charges of $7.02 million.
Cash net income decreased to $28.22 million or $0.41 per share from $34.16 million or $0.50 per share a year ago. Cash net income is also a non-GAAP measure which includes cash benefit related to goodwill charges of $2.30 million unchanged for both the periods.
On average, ten analysts polled by Thomson Reuters expected the company to report profit of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues decreased to $116.66 million from $137.17 million in the same period last last year. Analysts expected revenue of $122.11 million for the quarter.
Revenues from technology interoperability services dropped to $66.84 million from $88.57 million last year and other major segment, network services segment revenues rose modestly to $31.94 million from $31.10 million a year earlier.
Adjusted EBITDA dropped to $56.06 million from $67.61 million in the year-ago period.
For the nine-month period, net income dropped to $50.08 million or $0.73 per share from $61.21 million or $0.89 per share in the same period last year.
Adjusted net income for the period was $69.83 million or $1.03 per share, down from $80.62 million or $1.19 per share last year. Cash net income declined to 76.74 million or $1.13 per share from $87.53 million or $1.29 per share in the year earlier nine months period.
Total revenues for the period decreased to $339.06 million from $380.43 million a year earlier.
The company revised its full year guidance to adjust the impact of the recent messaging acquisition. Net income is now expected to be in the range of $59.5 million - $64 million and cash net income is now expected to be in the range of $98.5 million - $103 million. Earlier, the company expected net income in the range of $64.5 million - $74 million and cash net income in the range of $99 million - $108 million.
The company expects fiscal 2009 net revenues to be in the range of $466 million - $472 million. Last quarter, the company said that net revenues would be close to the lower end of the 2009 guidance of $460 million.
Analysts currently expect earnings of $1.54 per share on revenues of $479.88 million for the full year.
Monday, SVR closed at $17.25, up $0.12 or 0.70%, on the NYSE. In after hours, the stock dropped to $16.11, down 6.61% or $1.14.
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