Pegasystems soars after swinging to Q3 profit
Pegasystems Inc. (Nasdaq: PEGA) shares are soaring after the business services provider reported third-quarter revenue of $42 million, above analyst estimates of $29.62 million and up 25% from $33.5 million a year earlier.
“We are very pleased with our results for the third quarter, which reflect strong, balanced growth and progress on our strategic initiatives,” CEO Alan Trefler, Pegasystems said in a statement. “During the quarter, we closed significant new business with existing customers, continuing to drive growth with our target account strategy. As examples, two large U.K. government agencies, each with over 10,000 users, and one of the leading global players in financial services significantly expanded their use of Pegasystems products to meet additional business needs across operations and departments.”
The firm’s quarterly net income rose 975% to $3.5 million, or $0.09 per share, compared with a loss of $0.4 million, or $0.01 per share, during the same period of 2006.
“Our current financial statements show strong, steady improvement, with license revenue, services revenue, and gross profit all exhibiting solid year-over-year and quarter-to-quarter growth,” CFO Craig Dynes said in a statement. “We’re pleased with these financial results in light of the concern and uncertainty that the subprime mortgage problems have caused in the financial services sector.”
Today, PEGA shares closed at $12.96. Over the last 52 weeks, shares have ranged from $8.07 to $13.10.
