Enterprise software provider Blackboard Inc. (BBBB) reported a higher fourth-quarter profit on Wednesday, as a 17% increase in product sales drove total revenues up 18%. The company also provided guidance for the first quarter and full year 2010.
The Santa Clara, California-based company's fourth-quarter net income increased to $7.7 million or $0.23 per share from $1.8 million or $0.06 per share a year ago.
On a non-GAAP basis, net income for the fourth quarter increased to $16.7 million or $0.49 per share from $11.3 million or $0.35 per share in the comparable quarter last year. Non-GAAP net income excludes amortization of acquisition-related intangible assets, stock-based compensation, non-cash interest expense, and non-cash patent related impairment expense.
On average, 12 analysts polled by Thomson Reuters estimated earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.
Blackboard's fourth quarter revenue increased 18% to $100.0 million from $85.0 million in the year-earlier quarter. Analysts expected revenues of $99.03 million for the fourth quarter.
During the fourth quarter, product revenue increased 17% to $90.8 million while professional services revenue rose 22% to $9.3 million over the same period in 2008.
Blackboard's income from operations increased during the fourth quarter to $11.08 million from $2.58 million reported in the prior-year quarter.
For fiscal 2009, the company reported net income of $7.91 million or $0.24 per share, compared to net loss of $1.94 million or $0.06 per share in 2008. Revenue for the period increased 21% to $377 million from $312 million in the year-earlier period.
Blackboard's current deferred revenues increased 12% year-over-year to $186.7 million at the end of fiscal 2009.
Looking forward to the first quarter, Blackboard expects non-GAAP adjusted net income of $12.5 million to $15.1 million, which excludes stock-based compensation expense, amortization of acquisition-related intangible assets, and non-cash interest expense, all net of taxes; and non-GAAP adjusted net income of $0.36 to $0.43 per share. On a GAAP basis, net income is estimated in the range of $3.2 million to $5.7 million or $0.09 to $0.16 per share. The company expects first quarter revenues in the range of $98.6 million to $102.6 million.
On average, analysts currently expect earnings of $0.39 per share on revenues of $100.47 million for the first quarter.
For full year 2010, Blackboard estimates non-GAAP net income in the range of $58.6 million to $68.8 million or $1.65 to $1.94 per share. GAAP net income is expected in the range of $23.1 million to $33.3 million or $0.65 to $0.94 per share. Revenues for the full year is estimated to range between $424.0 million and $440.0 million. Analysts are looking for earnings of $1.78 per share on revenues of $427.37 million for full year 2010.
Blackboard also announced the retirement of Mike Beach from the post of Chief Financial Officer. Beach would be succeeded by John Kinzer, effective March 1, 2010.
BBBB closed Wednesday's regular trading at $40.67, up $1.45 or 3.70%, on a volume of 1.10 million shares on Nasdaq.
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