Carreker posts Q3 loss

Source: Carreker

Carreker Corporation (Nasdaq: CANI), a leading provider of payments technology and consulting solutions for the financial services industry, today reported results for its fiscal third quarter ended October 31, 2005.

Total revenue for the third quarter of 2005 was $28.4 million compared to revenue of $29.9 million in the second quarter of 2005. The Company reported an operating loss of $1.2 million for the third quarter of 2005, compared to operating income of $968,000 for the second quarter of 2005. The operating loss for the third quarter included a restructuring charge of $780,000, or ($0.03) per diluted share, associated with the personnel reductions discussed in the 2005 second quarter earnings conference call. The net loss for the third quarter of 2005 was $950,000, or ($0.04) per diluted share, as compared to net income of $1.1 million, or $0.04 per diluted share, for the second quarter of 2005.

"Our third quarter results were mixed. Strong license revenue was offset by declines in both contingency-related and traditional consulting revenue with the latter being negatively impacted by the Gulf South hurricanes. We are encouraged by the increase in software license revenue over the first and second quarters of 2005 and anticipate that our investments in new products and increased sales capacity will result in future revenue growth," said J. D. (Denny) Carreker, Chairman and Chief Executive Officer of Carreker Corporation. Mr. Carreker continued, "We are starting to see demand for our new products, which are generally on schedule, and believe the combination of new product and services sales and cost reduction initiatives will set the stage for attractive future growth and profitability."

Business Outlook

The Company expects fourth quarter revenue to be the highest of any quarter of the 2005 fiscal year due primarily to stronger consulting revenues and continued strength in license revenues. Fourth quarter operating income is expected to increase over all other quarters in fiscal 2005 primarily as a result of revenue growth and decreased costs associated with expense reduction initiatives.Download the document now 36.1 kb (Adobe Acrobat Document)

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