Intraware tops estimates in first quarter

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Intraware slipped past analysts' estimates in its first quarter Thursday but still lost $10.1 million, or 40 cents a share, on sales of $41.5 million.

First Call Corp. consensus expected it to lose 45 cents a share in the quarter.

Ahead of the earnings report, Intraware (Nasdaq: ITRA) shares closed off 1 3/8 to 18 7/16.

The $41.5 million in sales marks a 150 percent jump from the year-ago quarter when it lost $4.6 million, or 20 cents a share, on sales of $16.5 million.

Including a variety of one-time charges, Intraware lost $11.8 million, or 46 cents a share, in the quarter.

"Our quarterly financial results reflect strong demand across our entire business," said CFO Don Freed in a prepared release.

Separately, Intraware announced that it landed $25 million in financing from a group of institutional investors including Marshall Capital, an affiliate of Credit Suisse First Boston. Under the terms of the financing agreements, the company will issue three classes of preferred stock that will be convertible into the company's common stock at a 120 percent premium to the average closing bid price for the common stock during three separate month-long pricing periods beginning July 5.

"With the recently announced financing, we have a strong capital base to continue our momentum by offering IT professionals compelling solutions for the complex problems of managing their technology lifecycles," Freed said. "In addition, the growing revenue streams from ongoing contracts and the increase in deferred revenues continues to provide us with enhanced visibility for our business."

Last quarter, Intraware topped analysts' estimates when it lost $11.2 million, or 45 cents a share, on sales of $36.1 million.

Its shares surged to a 52-week high of 99 in December before sliding to a low of 10 1/8 in May.

All five analysts following the stock rate it either a "buy" or "strong buy."

Analysts expect it to lose $1.54 a share in the fiscal year.