Troubled US financial IT vendor Carreker has turned in a loss in its third quarter on flat revenues, as exceptional items and stock-based compensation masked an improving picture.
The company - which is currently exploring 'strategic alternatives' after disgruntled shareholders called for a sale - reported revenue of $28.3 million and a net loss of $89,000, for the third quarter of 2006 compared to revenue of $28.8 million and net income of $961,000, or $0.04 per share, for the second quarter of 2006. Figures for the year-ago period were not released wtih the statement.
Excluding exceptional items the company achieved earnings of 8 cents a share, more than double analysts' expectations for 3 cents per share.
Shares in the vendor moved up 2.86% to $7.55.
Carreker was put on the block in June after stakeholders at Chapman Capital and Bryant Riley called for the Dallas-based company to put itself up for sale.
Denny Carreker, chairman and CEO, issued a bland progress statement: "We continue to progress with our evaluation of strategic alternatives and are focused on delivering an outcome from this process that delivers value to all of our stakeholders."
He says that revenue and net income for the fourth quarter of fiscal 2006 will be the highest of any quarter of the 2006 fiscal year though the increase is not expected to be significant enough for the company to achieve the 9 to 16% income from operations goal that it had previously set for this quarter. Full year revenue for 2006 is expected to be relatively flat compared to fiscal 2005 but with improved profitability, he adds.