Identity protection solutions and service provider L-1 Identity Solutions (ID), Wednesday reported a wider loss for the first quarter due to higher expenses related to stock-based compensation. Revenue for the quarter increased from the prior year, beating Street expectations. L-1 Identity also provided second quarter earnings guidance.
For the first quarter, net loss of L-1 Identity widened to $3.79 million or $0.04 per share from $2.58 million or $0.04 per share in the same quarter a year ago.
Quarterly results include stock based compensation expenses of $5.30 million, an increase from the prior year quarter. Due to the adoption of new FASB accounting standards, such provisions were retroactively applied to all prior periods resulting in the reported net loss for the 2008 quarter widening from $1.9 million or $0.03 per share to a loss of $2.6 million or $0.04 per share.
On average, eight analysts polled by Thomson Reuters expected a loss of $0.05 per share for the quarter. Analysts' estimates typically exclude one-time items.
Revenue for the quarter increased to $150.19 million from $116.00 million in the year-earlier quarter, above Street estimates of $147.11 million.
Organic growth was 8%, driven a 27% growth in Biometrics and 34% in Enrollment Services, offset by lower consumable sales in Secure Credentialing.
Gross margin increased to 29% from 27% in the first quarter of 2008, attributed primarily to a change in the mix of business.
Total operating expenses increased to $39.26 million from $30.45 million in the preceding quarter a year ago.
For the second quarter, L-1 expects earnings, exclusive of stock based compensation, in the range of $0.02 to $0.04 per share and revenues in the range of $165.0 million to $170.0 million. The Street currently expects breakeven earnings for the quarter, on revenues of $175.52 million.
L-1 also continues to see full year 2009 earnings in the range of $0.08 - $0.15 per share and revenues in the range of $725.0 - $750.0 million. Earnings, exclusive of stock based compensation, is expected to be in the range of $0.20 - $0.27 per share.
Analysts' currently expects earnings of $0.07 per share, on revenues of $719.45 million for the year.
ID is currently trading at $8.07, up $0.34 or 4.40%, on a volume of 0.48 million shares.
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