Software Solutions provider for the energy industry, WellPoint Systems Inc. (WPS.V), Monday reported a swing to profit for the third quarter on lower expenses and higher revenues, compared with last year.
Calgary, Canada- based WellPoint said its net income for the third quarter was C$2.66 million or C$0.05 per share compared with a loss of C$8.95 million or C$0.19 per share in the prior year period.
Revenues for the quarter increased to C$9.92 million from C$7.82 million in the comparable period, led by license revenues which jumped to C$4.77 million from C$1.41 million last year, offset partially by a C$1.38 million decline in Professional service revenues from last year.
Revenues from international operations increased to 43% for the recently-ended three month period from 19% last year, attributable to a US$ 3.3 million indemnity payment from Export Development Canada or EDC.
Gross profit was C$7.4 million compared with C$4.0 million last year, on favorable revenue mix and the EDC insurance payment.
Operating expenses declined sharply to C$5.23 million for the third quarter, from C$13.22 million last year, helped by the absence of C$4.23 write-down charges on deferred development that impacted year-ago results, offset by C$1.69 million foreign exchange loss for the period.
For the first nine months of 2009, WellPoint reported a net income of C$3.69 million or C$0.08 per share, from a loss of C$13.65 million or C$0.30 per share last year. Total revenues were higher at C$29.04 million compared with C$27.62 million for the same nine-month period one-year ago.
Looking ahead, WellPoint Systems said it will continue to focus on increasing its net income and adjusted EBITDA, with the BOLO and iSoft acquisitions now in place.
As part of the focus-initiatives, the company sees deeper partnerships across the globe, including expanded and new agent relationships in international markets. In the current year, the company said it particularly intends to focus its activities on increasing market share and driving revenue from opportunities primarily in the North American and Middle Eastern markets.
The company also expects to increase sales and marketing of WellPoint Energy Broker in the North American and Middle Eastern markets and WellPoint EAM and WellPoint EFM solutions worldwide.
WPS.V is currently trading at C$0.22, up C$0.010 or 4.76% on the Canadian Stock Exchange.
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