Digital Island (Nasdaq: ISLD) on Monday announced a smaller-than-expected third quarter loss even as it unveiled an acquisition valued at more than $438 million.
After market close, the provider of hosting, content delivery, networking and application services reported a fiscal third quarter loss of $100.2 millino, or $1.51 per share. First Call's survey of a dozen analysts predicted a loss of $1.56 per share.
Third quarter revenue increased to $16.3 million, a 42 percent improvement sequentially.
The quarterly report came even as Digital Island said it would buy SoftAware Networks for 9.375 million shares of stock and $20 million in cash. Based on Digital Island's closing price Monday, the deal is worth $438.4 million.
Shares of Digital Island closed Monday's regular trading at 44 5/8, down 1 3/8 for the session. The stock fell to 41 1/8 in afterhours activity on the Island electronic communications networking, following the pair of announcements.
Acquiring SoftAware adds more than 500 clients, Digital Island said, bringing its combined total to more than 900 worldwide.
SoftAware Networks' QuickResponse Global Server Network provides distributed hosting of Web sites with a high-performance network infrastructure. The acquisition will accelerate Digital Island's penetration into media and entertainment markets, the companies added.
Other companies reporting quarterly results:
The provider of software for automating business tasks reported a second quarter loss of $7.7 million, or 34 cents per share, excluding charges related to stock compensation. First Call's survey of three analysts predicted a loss of 37 cents per share for the quarter ended June 30.
Including all expenses, Extensity lost $8.9 million, or 39 cents per share.
Second quarter revenue increased to $5.3 million, up 43 percent sequentially.
"Sales through direct and indirect channels were extremely strong, and new products were favorably received by existing customers as well as new accounts," said Bob Spinner, president and chief executive officer of Extensity. "Through the efforts of both organizations, Extensity increased its total customer base to include more than 170 customers."
The vendor of software for reporting and analyzing Internet traffic data reported a second quarter profit $2.1 million, or 7 cents per share, not counting one-time charges. First Call's survey of eight analysts predicted a profit of 6 cents per share for the quarter ended June 30.
Including costs related to the purchase of OpenSoft Communications, WebTrends earned $1.9 million, or 7 cents per share.
Second quarter revenue increased to $13.5 million, up 237 percent year-over-year and up 30 percent sequentially.
A survey of analysts by First Call Corp. predicted it would earn a nickel a share in the quarter.
The $17.5 million in sales marks a 77 percent improvement from the year-ago quarter when it lost $2.1 million, or 8 cents a share, on sales of $9.9 million.
"This was a very important quarter for Sagent as we are growing to record levels, adding nearly 150 new customers during the second quarter," said CEO Ken Gardner in a prepared release. "With the addition of these new customers, we now have more than 1,200 worldwide."
Sagent shares closed off 11/16 to 13 1/4 ahead of the earnings report.
First Call Corp. consensus expected it to lose 14 cents a share in the quarter.
The stock closed up 4 5/8 to 33 7/8 ahead of the earnings report.>