CyberSource lower on Q2 profit decline
Shares of CyberSource Corp. (Nasdaq: CYBS) are tumbling following news of a quarterly profit decline at the Mountain View, Calif.-based company.
The net income for the second quarter ended June 30 was $2.45 million, or $0.02 per share, compared with a net income of $2.57 million, or $0.07 per share, during the same three months of 2006, the provider of electronic payment and risk management solutions announced after Thursday’s close.
That was in line with what Wall Street was anticipating.
Higher operating costs negated a steep rise in revenues, which increased 39.6% to $22.89 million, compared with $16.34 million a year earlier.
Profit will decline further in the next three months, CyberSource said. The company predicts a net income of $2.2 million, or $0.06 per share, for the third quarter of 2007.
Ten analysts surveyed by Thomson Financial were projecting earnings of $0.09 per share. CyberSource booked a profit of $2.6 million, or $0.07 per share, during the third quarter of 2006.
At 3:08 p.m. ET the stock was down $1.82, or 13%, to $11.99.
