Transaction Systems Jumps

Transaction Systems Architects ( TSAI) surged 15% Wednesday after third-quarter earnings more than doubled, thanks to the release of valuation allowances related to foreign tax credits.

The Omaha, Neb.-based company earned $23.31 million, or 61 cents a share, in the quarter, compared with $10 million, or 26 cents a share, a year ago. Latest quarter earnings were aided by the release of valuation allowances related to foreign tax credits of 32 cents a share, and hit by 4 cents a share from various costs and 3 cents a share from equity-based compensation expense. Analysts surveyed by Thomson First Call were expecting earnings of 36 cents a share in the most recent quarter.

Third-quarter revenue rose 8.7% from a year ago period to $84.76 million. Analysts polled by Thomson First Call were expecting revenue of $88.92 million in the most recent quarter. The company's biggest contributor in terms of revenue was software license fees which witnessed a 11.5% rise in revenue to $42 million.

The company expects to earn $1.78 a share to $1.90 a share in the full year compared with its earlier forecast of $1.51 a share to $1.63 a share. The revised guidance estimate takes into account the addition of 32 cents a share from the release of valuation allowances related to foreign tax credits, offset by 4 cents a share related to an acquisition and penny a share related to globalization initiatives in the third and fourth quarters. Revenue for this year is expected to be $348 million to $360 million. Analysts expect earnings of $1.40 a share, on revenue of $352.95 million this year.

The company said that as on June 30, its 12-month backlog was $258.2 million compared with $257.5 million for the quarter ended March 31.

Shares rose $4.82 to $35.93.

This story was created through a joint venture between TheStreet.com and IRIS.

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