RightNow Technologies Inc. (RNOW) reported earnings from continuing operations of 4 cents per share for the second quarter of 2011, exceeding the Zacks Consensus Estimate of a loss per share of 1 cent.
Total revenues for the quarter were $54.8 million, up 26% year over year.
In terms of revenue mix, Recurring revenue, a key measure of growth, was $45.4 million, up 31% from the year-earlier quarter. Revenues from Professional Service were $9.4 million, up 8% from the year-earlier quarter.
Management stated that there was a shift in revenue mix toward recurring revenue.
On a geographical basis, North America accounted for 63% of total revenue, EMEA (Europe, the Middle East and Africa) contributed 21% and Asia Pacific generated the remaining 16%.
RightNow added 76 new customers in the most recent quarter. Current backlog at the end of the quarter was $334 million. The software portion of the current backlog at the end of the quarter was $152 million, which is 43% greater than in the second quarter of 2010.
Total gross margin was 72%, up 200 basis points from the year-earlier quarter. The increase in margin was driven by Recurring revenues, partially offset by a decrease in margins from Professional Services.
Operating margins improved to 11% from 9% in the year-earlier quarter.
During the quarter, the company generated cash of $6.4 million from operating activities and capital expenditures were $3.6 million. The company ended the quarter with total cash and investments of $256 million.
For the third quarter of fiscal 2011, the company expects revenues of $57 million, led by solid growth in Recurring revenue. Excluding stock-based compensation expense and non-recurring expenses, net income per share is expected to be 15 cents.
The company expects total revenue of $226 million in fiscal 2011. Management now projects Recurring revenue growth to be 27%, up from the previous expectation of 24%. Excluding stock-based compensation expense and non-recurring expenses, net income per share is expected to be 58 cents.
RightNow Technologies Inc. provides customer relationship management (CRM) software and services in the United States, Europe, and the Asia-Pacific. Its CRM software suite includes RightNow Service, RightNow Marketing, RightNow Sales, RightNow Feedback, RightNow Voice and RightNow Analytics.
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