Profit Sinks at Kronos

But the company guides higher for the second quarter.
Author:
Publish date:

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.

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.