Shares of BroadSoft Inc. (BSFT) slumped 25 percent in extended trade Wednesday, after a weak forecast for the first quarter and full year 2013. The multimedia software maker's fourth quarter profit declined, hurt mainly by higher expenses. Nevertheless, adjusted earnings for the quarter improved from last year, driven by a double digit revenue growth. As a result, both earnings and revenue for the period came in ahead of Wall Street estimates.
Gaithersburg, Maryland-based BroadSoft's fourth-quarter profit declined to $4.9 million or $0.17 per share from $5.5 million or $0.19 per share last year.
Excluding one-time items, earnings rose to $0.47 per share from $0.38 per share last year. On average, 13 analysts polled by Thomson Reuters expected earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.
Stock-based compensation expense for the quarter increased to $4.7 million from $2.3 million last year.
BroadSoft's revenues for the quarter grew 13 percent to $45.8 million from $40.6 million last year. Analysts estimated revenues of $45.74 million for the quarter.
BroadSoft provides software that enables fixed-line, mobile, and cable service providers to deliver voice and multimedia services over their IP-based networks.
Looking forward to the first quarter, BroadSoft expects adjusted earnings in the range of $0.02 to $0.12 per share on revenues of $37 million to $40 million. Analysts currently estimate earnings of $0.34 per share on revenues of $43.62 million.
For the full year 2013, the company expects adjusted earnings of $1.10 to $1.35 per share on revenues of $181 million to $189 million. Analysts currently anticipate earnings of $1.72 per share on revenues of $196.85 million for 2013.
BSFT closed Wednesday's trading at $30.91, down $2.44 or 7.32%, on the Nasdaq, on a volume of 3 million shares. The stock further lost $7.46 or 24.13% in after hours.
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