CSG Systems Profit Soars

Guidance is in line.
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CSG Systems International

(CSGS) - Get Report

, an outsourced billing, customer care and print and mail solutions and services provider, said its first-quarter earnings rose 80.2% from the year-ago period.

The Englewood, Colo.-based company earned $15.5 million, or 33 cents a share, in the quarter, compared with $8.6 million, or 17 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of 31 cents a share in the most recent quarter.

First-quarter revenue was down 0.2% from a year ago period to $93 million.

The company expects to earn 30 cents a share to 31 cents a share in the second quarter, on revenue of $91 million to $93 million. Full year earnings are expected to be $1.28 a share to $1.35 a share compared with its earlier forecast of $1.25 a share to $1.35 a share, on Jan.24. Revenue for the full year is expected to be $371 million to $381 million compared with the earlier guidance of $365 million to $375 million. Analysts are expecting earnings of 32 cents a share, on revenue of $92.1 million for the second quarter, and earnings of $1.30 a share, on revenue of $369.3 million for the full year.

First-quarter gross profit fell 1.5% from a year ago period to $45.5 million and gross margin declined 65 basis points to 48.9%. Operating income for the quarter rose 5.7% to $22.2 million and operating margin moved up 134 basis points to 23.9%.

By segment, first-quarter revenue from processing and related services segment was up 4% from a year-ago period to $86.4 million and revenue from software, maintenance and services segment was down 34% from a year-ago period to $6.6 million.

During the first quarter, the company repurchased about 669,000 shares of its common stock for $15.0 million at weighted-average price of $22.44 a share under its buyback program. Now, the remaining number of shares authorized for repurchase under the stock repurchase program is 6.2 million shares.

The company also said that it named Peter Kalan as executive vice president of business and corporate development, and Randy Wiese, a 10-plus year CSG veteran, as CFO. Both Kalan and Wiese will assume responsibilities from the second quarter.

Shares rose 66 cents to $25.50.

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