BRITISH COLUMBIA

Absolute Software posts first-quarter profit of $500,000, revenues up 8 per cent

11/05/2012 04:54 EST | Updated 01/05/2013 05:12 EST
VANCOUVER - Absolute Software Corp. (TSX:ABT) delivered a profitable first quarter, helped by an eight per cent increase in revenues.

The security software company posted earnings of $500,000 in the three months ended Sept. 30, compared to a loss of $1.9 million a year earlier.

Revenue increased to $19.8 million from $18.2 million.

The company has also acquired private firm LiveTime Software, which provides help desk and IT support, for $15 million in cash and stock to be paid in two parts. About 60 per cent of the amount will come at the close of the arrangement, while the rest will be paid over three years.

"We achieved year-over-year increases in the corporate and healthcare verticals, the Absolute Manage product line and in our international business, all of which are key expansion areas for Absolute," said chief executive John Livingston in a release.

However, he noted that a broader slowdown in the PC industry affected the results, as layoffs and lowered guidance impacted some of its partners.

Absolute sells embedded security and tracking technology for computers and mobile devices.

In September, Hewlett-Packard Co. announced it would layoff 29,000 employees. A month earlier Dell Inc. pulled back its forecasts for the third quarter of 2013, with revenue expected to fall two to five per cent.

"While we are disappointed with our overall results for the quarter, we are encouraged by industry forecasts, which are predicting a transition to an improved sales environment toward the end of the fiscal year," Livingston said.

The company plans to offset higher spending with cost cutting in other areas of its operations.

Shares of the company were unchanged at $3.80 on the Toronto Stock Exchange before the earnings announcement.