, weighed down by heavy charges for stock options and an acquisition, saw its net income fall by 18% in the first quarter, despite a 12% increase in revenue.
Earnings guidance for the second quarter was well below expectations, and shares were off $2.43, or nearly 6.7%, to $35.21 in recent after-hours trading on Wednesday.
The business software maker posted net income of $12.3 million, or 13 cents, compared with a profit of $15 million, or 16 cents a share, in the same quarter last year. Total revenue rose to $278 million, which represented a gain of 17% with currency held constant.
License revenue for the quarter were $126 million, an increase of 9% absolutely, or 15% in constant currency.
Excluding $8.9 million of acquisition related expenses, and $13.4 million in stock-based compensation expense, the company earned $31.1 million or 33 cents a share.
Analysts polled by Thomson First Call were looking for a 30-cent profit (excluding option expenses) on sales of $281.2 million.
Deferred revenue increased by 22% to $256 million.
Looking to the second quarter, the company told investors to expect total revenue to range between $295 million and $300 million, with a GAAP profit ranging from 10 cents to 13 cents a share.
Business Objects said that non-GAAP profit should fall between 30 cents and 33 cents a share.
Analysts were forecasting a profit of 37 cents a share on sales of $298 million.