IT services provider Ness Technologies Ltd. (Nasdaq: NSTC) today published its financial report for the second quarter of 2009. The company beat analysts' profit forecasts, and reiterated its full-year guidance.
Ness posted $137.2 million revenue for the second quarter, 20% less than for the corresponding quarter of 2008. The company attributed half of the drop - $17.3 million - to foreign currency conversion effects on non-dollar revenues. The company missed the analysts' consensus of $139.5 million revenue.
GAAP-based net profit fell 87% to $1 million ($0.03 per share) for the second quarter. Non-GAAP net profit fell 65% to $3.4 million ($0.09 per share) for the second quarter. The company beat the analysts' consensus of earnings per share of $0.07.
Ness had $59.2 million in cash and cash equivalents at the end of June. Operating cash flow was $6.5 million in the second quarter, and a record $15.1 million in the first half of 2009. Orders backlog was $682 million at the end of June, unchanged from March, but 15% less than a year earlier. The backlog would have fallen 7% if the currency conversion effects from the stronger dollar were discounted.
Ness had 7,800 employees at the end of June.
Ness reiterated its full-year guidance of non-GAAP net earnings per share of $0.40-0.60 on $590-620 million revenue. The analysts' consensus is $595.4 million revenue for the year.
Ness president and CEO Sachi Gerlitz said, "Although conditions remained challenging, we're seeing signs that demand environment is beginning to stabilize in some of our markets. It fells good to go from defense to offense."
Ness's share closed at $4.98 yesterday, giving a market cap of $192 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 29, 2009
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