Knobias Clip Report (10-28-2008) ACTU
Submitted By Knobias ClipReport
ACTU: Shares Move Higher on Better Than Expected Q3 Results; CEO Comments
Tuesday , October 28, 2008 10:15ET
By Fain Hughes, fhughes@knobias.com
Shares of Actuate Corporation (ACTU) surged in early trading after the Company announced its financial results for the third quarter of 2008. Revenues were $33.7 million, compared with $34.7 million in the third quarter of 2007. Non-GAAP net income for the third quarter of 2008 was $5.3 million, or $0.08 per diluted share, compared with non-GAAP net income of $6.0 million, or $0.09 per diluted share, in the third quarter of 2007.
The Company updated its outlook for the full year 2008. Specifically, the Company expects to post total revenue of approximately $131 million-$135 million, non-GAAP operating margins in the range of 17%-20% and fully diluted non-GAAP EPS of approximately $0.26-$0.28.
Peter I. Cittadini, President and CEO of Actuate, commented in a conference call, “Despite current economic conditions, we are well positioned due to our open-source business model, our ability to focus on profitability and our continued strong cash flows from our customers due to the highly differentiated and mission critical nature of what we do for for them.”
He continued, “In Q3, our OEM business was the largest contributor to sales, followed by the financial services sector and goverment sector. We are encouraged by the much more horizontal nature of the contributors during Q3. Of course, any rebound in the financial services sector is also very good for us on a moving forward basis.”
Mr. Cittadini added, “We believe that a recession will be very kind to open-source as companies seek to lower their IT costs while continuing to service business needs. In fact, we are seeing OEMs making an increased committment to open-source.”
JMP Securities maintained its Outperform rating today but lowered their price target for ACTU to $4 from $7. The firm said that it continues to recommend shares as they believe ACTU is well positioned in a difficult environment, is attractively valued, and is an acquisition target.
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