Pervasive Software Inc. (PVSW) reported revenues of $11.7 million in the third quarter of 2010, down 10% from a year ago. Results for the year-ago quarter included one relatively large transaction with a database customer representing approximately $3.0 million in revenue.
In terms of product mix, Database products represented approximately 59% of total business while Integration products accounted for approximately 37%. Data solutions and data rush products accounted for the remaining 4%.
Net income was $1.0 million or 6 cents per share, compared to a net income of $1.9 million or 10 cents per share in the year-ago quarter. Quarterly EPS was 2 cents above the Zacks Consensus Estimate.
Excluding amortization of purchased intangibles and stock-based compensation expense, net income came in at $1.3 million or 7 cents per share, compared to a net income of $2.1 million or 11 cents per share in the year-ago quarter.
Cash flow continues to be positive for the company. During the quarter, Pervasive generated $2.2 million of cash from operating activities and repurchased approximately 252,000 shares for approximately $1.3 million at a weighted average price per share of $5.05. Pervasive has more than $5.0 million of authorized repurchase funds remaining under its $10.0 million stock repurchase program, as announced in March 2009.
Pervasive ended the quarter with cash and equivalents of $42.4 million and no debt. Going forward, management expects revenues around $11 – $12 million compared with $11.1 million in the fourth quarter. Earnings are projected around 3 – 6 cents. Excluding amortization of purchased intangibles and stock-based compensation expense, EPS is forecasted at 5 – 8 cents.
Read the full analyst report on “PVSW”
Zacks Investment Research
