Financial

posted on 31 July 2008 08:37

Double-Take Software announced a 22 percent in revenues for its second 2008 quarter but flat net income once tax measure are excluded.

In Q2 08 it reported revenues of $24.4 million compared to $20.4 million in the year-ago quarter, GAAP net income in Q2 08 was $2.7 million ($0.11/share) whereas it was $7.5 million ($0.33.share) in Q2 07.

The decrease in net income and diluted earnings per share was due to income tax expense increasing to $2.2 million in Q2 08 from an income tax benefit of $2.8 million in Q2 07. For comparative purposes, if the effective tax rate in Q2 08 had been in effect in Q2 07, net income per diluted share in Q2 07 would have been flat at $0.11.

Income from operations was $4.4 million in Q2 08 compared to $4.0 million in Q2 07. Between the income and the net income any rise in net income just disappeared

Dean Goodermote, Double-Take Chairman and CEO, said: "We are pleased with the performance of the company, which once again produced solid earnings. Revenue also met our expectations, though it was muted by weaker than expected license sales out of Europe. Sales of our virtual systems products continued to sell well and we secured our first key accounts for our Linux offering. We are also excited about the long term potential of our acquisition of emBoot, which will provide our customers with increased capabilities to dynamically manage their workloads."

Revenue for the third quarter of 2008 is expected to be between $25.7 and $26.3 million. The company continues to expect full-year 2008 revenue to be between $101.7 and $103.5 million. Non-GAAP operating income is expected to be $21.8 to $22.2 million which is down from previous guidance of $22.2 to $23.0 million solely due to the effect of the emBoot acquisition, which includes retention bonuses and amortization.

^{[Chris Mellor.]}