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Descartes Revenue Rises
Acquisition costs lower net results, but services produce strong gains
Revenue rose 7 percent for Descartes Systems Group to $17.4 million during the first quarter of fiscal 2010, ending April 30.
The Waterloo, Ontario-based provider of global on-demand logistics software-as-a-service said revenue increased 11 percent from the previous quarter.
Services revenue, which accounted for 97 percent of total revenue, increased 17 percent to $14.4 million over the previous quarter. Gross margin increased to 70 percent, from 65 percent a year earlier, and 68 percent during the previous quarter (fourth quarter of fiscal 2009).
The company's pre-tax income was $1.8 million, up 13 percent from the same quarter a year earlier. However, it was lower than the $2.6 million in pre-tax income recorded for the previous quarter (fourth quarter of fiscal 2009).
As a result of changes in GAAP taxing rules, the company's results for the first quarter of fiscal 2010 include an additional $300,000 in acquisition-related costs compared with prior quarters when Descartes was not required to expense such costs in the period incurred.
Adjusted net income was $4.7 million, up 24 percent from $3.8 million a year ago but only 2 percent higher than adjusted net earnings of $4.6 million in the previous quarter.
Contact Alan Field at afield@joc.com.
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