Last modified: January 31, 2001 3:40 PM PST
WebMethods handily beats earnings estimates
After market close Wednesday, the provider of software for connecting business applications, linking systems of buyers and suppliers, and establishing online business-to-business marketplaces reported a fiscal third-quarter net income of $2.7 million, or 5 cents per share, excluding special charges. A survey of 16 analysts produced a consensus forecast of a penny per share for WebMethods' December quarter, according to First Call.
Shares of WebMethods traded at $86 in after-hours activity on the Island ECN, immediately after the release of quarterly results. WebMethods fell $5.50, or about 6 percent, to $85.88 in Wednesday's regular trading ahead of the earnings report.
Third-quarter revenue increased 237 percent year over year to $59.4 million, surpassing First Call's consensus expectation of $51.29 million. License revenue rose 220 percent to $43.4 million.
"Strong revenue growth driven by increased penetration of both Global 2000 companies and major industry-backed exchanges were significant contributors to the company reaching profitability," Chief Executive Phillip Merrick said.
The company added 85 customers during the quarter, to finish December with a total of 550 clients.
Including amortization and acquisition-related charges, WebMethods in the third quarter lost $12.7 million, or 27 cents per share.
