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Loss Widens at L-1 Identity

Acquisitions hurt the bottom line.

Security identity tool provider

L-1 Identity

(ID)

posted a wider-than-expected loss in the first quarter on higher acquisition-related charges.

The company lost $8.8 million, or 12 cents a share, compared with a loss of $2.2 million, or 7 cents a share, the year before.

Analysts polled by Thomson Financial were expecting a loss of 9 cents a share.

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Revenue rose to $70 million from $23.4 million, largely as a result of businesses acquired since the year-ago quarter. L-1 Identity said $3.3 million of the top-line increase came from organic growth.

Analysts were expecting revenue of $69.2 million.

Acquisitions will continue to be a key element of L-1's growth strategy, said the company.

L-1 completed the $17.8 million acquisition of the Canadian-based company ComnetiX on Feb. 21.

L-1 expects to close its acquisition of Columbia, Md.-based, network security company Advanced Concepts, which was announced last week, at the end of the second quarter.

For the second quarter ended June 30, the company expects revenue between $90 million and $92 million, and EPS in the range of 7 cents to 9 cents a share. Analysts were expecting revenue of $90.8 million on earnings of 7 cents a share.

For the year ending Dec. 31, L-1 guided revenue in the range of $365 million to $375 million and earnings of about 10 cents to 15 cents a share. Analysts were expecting revenue of $346.8 million on earnings of 12 cents a share.