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Storage Networks

(STOR) - Get STORE Capital Corporation Report

swung to a first-quarter profit due in part to ongoing cost cuts, which included a 50% workforce reduction. The company beat analysts' expectations for a quarterly loss.

The company earned $15.6 million, or 16 cents a share, during the quarter ended March 31, compared with a loss of $5.4 million, or 5 cents a share, in the year-earlier period.

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Excluding non-recurring revenue and a $10.4 million insurance settlement, the company earned $1.8 million, or 2 cents a share. Analysts were expecting a loss of 4 cents a share. Non-recurring revenue of $3.4 million was associated with managed-services customer contract renegotiations.

Revenue was $16.3 million, compared with $31.6 million in the prior year period.

During the quarter, the company said it reduced its workforce by 50%, primarily in sales, marketing and non-core software development, resulting in cost improvements realized during the quarter.

Shares of the Waltham, Mass.-based company were recently up 26% to $1.10.