Tuesday, March 8, 2011

Broadsoft (BSFT) - Wow

This name has only been on the periphery of my watch lists, but not anything I've really sat down to investigate deeply as it seemed somewhat remarkable in fundamentals - although a fantastic performer in stock price since IPO.  Today's nearly 40% move post earnings report for Broadsoft (BSFT) is certainly telling me that was an error on my part.

I will have to take a second pass and look into this one much deeper for future purposes.  Any reader actually use this service? Just curious about your exxperience.

BroadSoft, Inc. provides residential and business voice over Internet protocol (VoIP) application software. It offers BroadWorks for combining a range of VoIP applications in a single platform. The company’s BroadWorks delivers communication solutions that integrate video, fax, voice, and email communications for businesses and residences through IP PBX/centrex, mobile PBX, business line, trunking, and residential broadband. 

Some head scratching earnings estimates - the company did 44 cents vs 30 cents expectation this quarter, but analysts are only in for 4 cents next quarter (5 analysts) on a substantial dip in revenue.  This certainly does not seem like a cyclical business from quarter to quarter so on first glance I'm bewildered.  Will have to sniff around.

Via AP:

  • Communications software company Broadsoft Inc. said Monday that its net income jumped as revenue grew 85 percent and costs did not rise in tandem. It also gave guidance for the first quarter and full year that exceeded analysts' forecasts.
  • Net income in the three months to Dec. 31 hit $11.2 million, or 41 cents per share, from $375,000, or 5 cents per share, a year earlier.  Revenue rose to $35.8 million from $19.3 million. Adjusted to exclude stock-based compensation expenses and amortization related to acquired intangible assets, earnings came to 44 cents per share. Analysts were also looking for $32 million in revenue.
  • For the first quarter through March, BroadSoft said it expects adjusted earnings of 4 cents to 11 cents per share and revenue of $27 million to $29 million. Analysts were expecting 7 cents per share of adjusted earnings on $25 million in revenue.  (again, why such a drop in revenue - $36M to $27-$29M quarter over quarter?)
  • It also said it expects full-year adjusted earnings of 56 cents to 66 cents per share. Analysts had been forecasting 57 cents a share. It forecast full-year revenue of $116 million to $120 million, better than the $115 million analysts had been expecting.

No position

Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012 FundMyMutualFund.com