Software and services provider Solera Holdings Inc. (SLH), Thursday reported a rise in profit for the second quarter, helped by higher revenues. Both earnings and revenue came ahead of the analysts' estimates. The company also raised its earnings guidance for the fiscal 2010, expecting ahead of analysts' predictions.
The San Diego, California-based company's net income attributable to the company for the second quarter was $23.28 million or $0.33 per share, compared to $19.64 million or $0.29 per share last year. Results for the quarter include amortization charges of $16.60 million, impairment charges of $1.73 million and stock-based compensation of $1.94 million.
Adjusted earnings for the quarter increased to $37.81 million or $0.54 per share from $26.06 million or $0.39 per share last year.
On average, seven analysts polled by Thomson Reuters expected the company to report profit of $0.47 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter increased 24.4% to $163.32 million from $131.30 million a year ago. After adjusting for changes in foreign currency exchange rates, revenue for the second quarter of fiscal year 2010 increased by about 15.2% over the prior year second quarter. Analysts expected revenue of $156.68 million for the quarter.
EMEA revenue was $111.1 million for the second quarter, representing a 37.9% increase over the prior-year period. Americas revenue was $52.2 million for the second quarter, representing a 3.0% increase over last year.
Revenue from insurance company customers was $62.2 million for the second quarter, representing an 11.2% increase over the prior year period. Revenue from collision repair facility customers increased 17.3% to $57.3 million from a year ago.
Revenue from independent assessors was $15.6 million for second quarter, representing a 21.0% increase over the prior year period. Revenue from automotive recycling, salvage and other customers more than doubled to $28.2 million from the previous year.
Interest expense declined to $8.61 million from $9.03 million in the previous year.
For the six-month period, net income increased to $43.26 million or $0.62 per share from $33.99 million or $0.51 per share in the same period of the previous year. Revenues for the quarter increased to $314.09 million from $274.29 million a year ago. Looking forward, the company raised its fiscal 2010 adjusted earnings outlook and narrowed its revenue outlook to the upper end.
Net income for 2010 is expected to be in the range of $70 million-$76 million, compared to the prior guidance in the range of $62 million-$71 million. Adjusted net income is expected to be $136 million-$141 million, compared to the prior guidance of $132 million-$138 million. Adjusted EPS is expected to be $1.94-$2.01, compared to the prior guidance of $1.89-$1.97.
Analysts currently expect the company to report earnings of $1.95 for the full year.
Revenues for the fiscal year are expected to be in the range of $629 million-$632 million, compared to the prior guidance in the range of $627 million-$632 million. Analysts currently expect revenue of $630.95 million for the fiscal year 2010.
The company has also approved a quarterly cash dividend of $0.0625 per share of outstanding common stock and per outstanding restricted stock unit. The dividend will be payable on March 22, 2010 to stockholders and restricted stock unit holders of record at the close of business on February 22, 2010.
SLH closed Thursday's regular trading at $32.28, down 0.51 or 1.56%, on a volume of 0.50 million shares on the NYSE.
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