Ness Technologies dips on profit decline
Shares of information technologies services provider Ness Technologies, Inc. (Nasdaq: NSTC) are trading lower on news the Tel Aviv, Israel-based company reported a decline in quarterly net income. At 10:08 a.m. ET shares were down $0.70, or 5.35%, to $12.39.
Meanwhile, the Russell 2000 was up 7.35 points, or 0.90 percent, at 823.60.
The net income for the quarter ended March 31 was $5.7 million, a 10% decline compared with net income of $6.3 million in the first three months of 2006. That translates to earnings of $0.15 per share, in line with Wall Street’s projections but below earnings of $0.18 per share in the first quarter of 2006.
“We had a successful first quarter, bringing in strong quarterly revenues and meeting management expectations,” President and CEO Sachi Gerlitz said before the opening bell. “We have continued to sign large-scale strategic deals which we expect will have a positive impact on future results.”
An 18% increase in quarterly revenue to $125.8 million, compared with $107.0 million a year prior, was offset by exceptional expenses of about $3.0 million.
Looking ahead, Ness said it expects revenues in the range of $560 million to $570 million and earnings per share in the range of $1.00 to $1.05. However, the company said that current weakness of the U.S. dollar could decrease earnings by $0.06 per share. Analysts were projecting earnings of $0.99 per share.
