Network management software provider SolarWinds, Inc. (SWI) reported Monday a year-over-year increase in profit for the fourth quarter on 32% revenue growth. The company also provided earnings and revenue guidance for the first quarter and full-year 2010, with earnings per share forecast above analysts' expectations.
In a statement, president, chief operating officer and chief financial officer, Kevin Thompson said, "The fourth quarter of 2009 was a strong quarter for SolarWinds, primarily due to a significant increase in interest and purchasing activity from commercial market customers, globally. The investments we have made over the past year in our product portfolio, coupled with the focus on our international sales and marketing efforts, have resulted in not only increased global demand for SolarWinds' products, but also improved our ability to satisfy that demand."
The Austin, Texas-based company reported net income of $6.55 million or $0.09 per share for the fourth quarter, compare to $2.88 million or $0.09 per share in the prior-year quarter. Excluding items, net income was $13.50 million or $0.19 per share, compared to $7.25 million or $0.12 per share in the year-ago quarter.
On average, 11 analysts polled by Thomson Reuters expected the company to earn $0.16 per share for the fourth quarter. Analysts estimates typically exclude special items.
Total revenues for the quarter increased 32% to $32.98 million from $24.90 million in the same quarter last year. Ten Wall Street analysts had a consensus revenue estimate of $33.59 million for the quarter.
Operating income for the fourth quarter rose dropped to $6.90 million from $11.27 million in the prior-year quarter, while total operating expenses were $24.80 million, up from $12.65 million in the year-ago quarter.
Gross profit for the quarter increased to $31.70 million from $23.92 million in the comparable quarter a year ago.
For fiscal 2009, the company recorded net income of $29.51 million or $0.52 per share, higher than $11.38 million or $0.35 per share for the previous year. Excluding items, net income for the year rose to $42.53 million or $0.63 per share from $27.81 million or $0.47 per share in the year ago. Analysts expected the company to report earnings of $0.58 per share for fiscal 2009.
Total revenues for the full year increased 25% to $116.45 million from $93.14 reported in fiscal 2008. The Street was looking for full-year 2009 revenues of $117.12 million.
"Over the course of 2010 and as we expand into new areas, we hope to continue to build on our reputation of delivering powerful, easy-to-use and effective products that address the immediate needs of our customers and the market," Thompson added.
Looking ahead to the first quarter of fiscal 2010, the company expects non-GAAP net income in the range of $11.3 million to $11.7 million and earnings in the range of $0.15 to $0.16 per share. Total revenues are forecast in the range of $33.7 million to $34.7 million. Street analysts expect earnings of $0.15 per share on revenues of $33.52 million for the first quarter.
For fiscal 2010, the company expects non-GAAP net income in the range of $54.0 million to $56.0 million and earnings in the range of $0.72 to $0.75 per share. Total revenues are forecast in the range of $159.0 million to $164.0 million. Analysts expect earnings of $0.71 per share on revenues of $153.01 million for the full-year 2010.
SWI closed Monday's regular trading at $20.04, down $0.25 or 1.23% on a volume of 0.58 million shares.
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