S1 Corp. (Nasdaq: SONE) was down 11/16 at 10 in early trading Wednesday after the e-commerce software maker said its loss for the third quarter was wider than a year earlier, due in part to a big charge for consolidating recent acquisitions.
Atlanta, Georgia-based S1, which provides software and services for online financial transactions, said revenue for the quarter rose 160 percent from a year earlier to $64.4 million, while the loss before items totaled $12.6 million, or 23 cents per share, compared with a loss of $33,000, or breakeven per share, in the same quarter last year.
The company posted a net loss of $136.1 million, or $2.46 per share, after merger-related costs and other charges of $125.3 million, or $2.23 per share. Analysts were expecting a loss of $2.35.
Software license revenue rose 545 percent from a year earlier to $14.6 million, while revenue from professional services increased 186 percent to $42.2 million. Data center revenue was 179 percent higher, at $5.8 million.
Gross margin for the quarter remained flat at 44 percent.
Chief executive officer James S. Mahan III said the company is poised to meet the needs of small and large financial services industries. “After successfully integrating five companies in the last year, we have channeled our energies into the core e-finance platforms that enable our customers to differentiate their products in the financial services marketplace,” he said.
Last week, S1 said it laid off 7 percent of its workers as it moved to combine operations of its recently acquired businesses. “Through multiple acquisitions, S1 has increased its employee base dramatically in the past year,” Mahan said.
Company shares have fallen from a 52-week high of 142 1/4, reached last February. The stock set a 52-week low of 7 3/8 last month.
Loading ...
Social Media
See all Social Media