Profit Sinks at Kronos
Business software vendor
Kronos
(KRON)
saw first-quarter net income drop by 42%, while sales increased by 8% over last year.
Even so, the results -- as well as second-quarter guidance -- were better than analysts had expected, and in after-hours trading on Instinet, shares were up $2.21, or 5.5%, to $42.51.
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Net income for the December quarter slipped to $6.2 million, or 19 cents a share, from $10.7 million, or 33 cents a share last year. Revenue was $127.9 million, up from $118.3 million in 2004.
Excluding various adjustments and charges to both the top and bottom line, the company earned a profit of 34 cents a share on revenue of $129.5 million. Analysts polled by Thomson First Call were expecting a 28-cent profit with revenue of $128.7 million.
"While we were disappointed with our results this quarter, we've concluded from a careful review of the business that our new products are being well-received, there's solid demand in all our target markets, and the organization is stronger than ever," Kronos Chief Executive Officer Aron Ain said in a prepared statement.
Kronos sells software to retailers and other specialized markets
Looking to the second quarter, the company forecasts a non-GAAP profit of 39 cents to 42 cents a share on sales of $137 million to $140 million. Wall Street was looking for a 35-cent-a-share profit on revenue of $134.8 million.
