CyberSource Corp. (CYBS), a provider of electronic payment and risk management solutions, Thursday reported a decline in profit for the fourth quarter, reflecting lower margins and higher operating expenses that more than offset a 22% rise in revenues. Adjusted earnings, however, rose from last year and came ahead of Street estimates. The company also provided guidance for the next quarter and fiscal year 2010.
The Mountain View, California-based company's GAAP net income for the fourth quarter was $5.08 million or $0.07 per share, compared to $10.03 million or $0.14 per share in the fourth quarter of 2008. Results for the quarter include depreciation expense of $2.67 million, amortization charges of $6.31 million and non-cash taxes and reversal of valuation allowance of $2.14 million.
Non-GAAP net income for the fourth quarter was $17.15 million, a 27% increase from $13.56 million last year. Non-GAAP earnings per share was $0.24, a 26% increase from $0.19 a year ago.
Revenues for the quarter increased 22% to $76.09 million from $62.25 million in the year ago quarter.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.21 per share on revenues of $73.75 million for the quarter. Analysts' estimates typically exclude special items.
Cost of revenues for the quarter increased to $37.01 million from $30.26 million in the previous year. Gross profit was $39.08 million, compared to $31.99 million a year ago.
Quarterly operating expenses rose to $31.44 million from $30.75 million last year. Sales and marketing expenses rose to $18.48 million from $17.40 million in the previous year. Product development expenses for the quarter were $8.03 million, up from $5.97 million a year ago.
Income tax provision for the quarter was $2.52 million, compared to a benefit of $7.71 million in the year-ago quarter.
During the fourth quarter, CyberSource processed 707 million billable transactions, a 29% increase over the same period the previous year. The value of transactions processed was about $35.1 billion, a 25% increase over the fourth quarter 2008. The company also signed 33,400 new customers in the quarter, up 20% over the prior year, increasing its customer base to about 295,000 active customers.
For the fiscal 2009, net income rose slightly to $10.96 million or $0.15 per share from $10.73 million or $0.15 per share in the previous year. Adjusted income was $58.34 million or $0.81 per share, compared to $48.08 million or $0.67 per share a year ago. Revenues for the year rose to $265.14 million from $229.03 million last year.
Analysts expected earnings of $0.78 per share on revenues of $263.16 million for the fiscal 2009. Looking forward to the first quarter, the company expects to record GAAP net income between $2.3 million and $2.6 million. Non-GAAP net income for the first quarter is expected to be between $14.1 million and $14.4 million and non-GAAP earnings per share to be between $0.19 and $0.20. Total revenue is expected to be between $73.5 million and $74.0 million.
Analysts expect the company to report earnings of $0.21 per share on revenues of $71.67 million for the first quarter.
For the full year 2010, GAAP earnings per share is expected to be between $0.19 and $0.20 per share. GAAP net income for 2010 is expected to be between $14.5 million and $15.0 million. Non-GAAP net income for the full year 2010 is expected to be between $66.0 million and $67.5 million. Non-GAAP earnings per share is expected to be between $0.89 and $0.91. Total revenue for 2010 is expected to be between $310.0 million and $315.0 million.
Analysts expect the company to report earnings of $0.90 per share on revenues of $308.36 million for fiscal 2010.
CYBS closed Thursday's regular trading at $17.66, down 0.56 or 3.07%, on a volume of 0.72 million shares on the Nasdaq. In after hours, the stock gained 0.10 or 0.57%, trading at $17.76.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.