Report hurts Broderbund stock
Broderbund Software's stock closed down 1-11/16 today after the company missed expectations on its quarterly results.
The company, which reported after the markets closed, posted net income of $11,000, or zero cents a share, down from net income of $6.2 million, or 29 cents a share. Analysts were expecting the software maker to report 3 cents a share, according to First Call. In active morning trading, the stock fell to 24-3/8, from 26-9/16. It rebounded slightly to close at 24-7/8.
Revenue for the third quarter ending May 31 was $39.3 million, up 12.3 percent from $35 million for the same quarter last year. The increase was a result of modest price increases and improved product flow, the company said.
During the third quarter, Broderbund signed a letter of intent to acquire Parsons Technology from Intuit (INTU ). Broderbund intends to employ Parsons' direct-to-consumer services to deliver its product portfolio. The acquisition is expected to be completed in the fourth quarter.
As part of its ongoing stock repurchase program, the company repurchased 100,000 shares of its common stock on the open market during the quarter ended May 31. These buys are intended to offset dilution from shares issued under the Company's stock option and stock purchase plans.
Broderbund released a total of eight new titles, nine upgrades to existing products, and two conversions using different languages during the third quarter.