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Absolute Software Q1 profit falls to $300K on higher taxes; dividend increased

11/03/2014 05:59 EST | Updated 01/03/2015 05:59 EST
VANCOUVER - Security software specialist Absolute Software Corp. (TSX:ABT) says a big increase in income tax expense and a foreign exchange loss contributed to a sharp drop in net income in its fiscal 2015 first quarter.

However, the company said that because of its strong financial position it was increasing the quarterly dividend by a penny to seven cents per share, payable Nov. 28 to shareholders of record on Nov. 7.

Vancouver-based Absolute set net income in the three months ended Sept. 30 was $300,000 or a penny per share, down from $1.1 million or three cents per share in the comparable fiscal 2014 period.

It said the bottom line was impacted by a foreign exchange loss of $300,00 versus a gain of $200,000 in the year-earlier period, while income tax expenses rose to $1.5 million from $400,000.

Revenue rose seven per cent to $23.2 million from $21.7 million and total sales contracts grew 10 per cent to $26.1 million, including a 14 per cent growth in commercial sales contracts to $24.8 million.

"We continue to make significant gains within highly regulated industries as well as in the education vertical where we are fortifying and expanding a very strong market position," CEO Geoff Haydon said in remarks accompanying the earnings report, which was issued after markets closed.

"Our 63 per cent increase in cash from operations reflects the strength of our business model, providing us with the resources required to execute against our growth opportunities while still returning capital to shareholders through our continued dividend and share buyback programs."

On the Toronto Stock Exchange, Absolute share closed down eight cents at $7.01 on Monday.