IT services company Ness Technologies Ltd. (Nasdaq: NSTC; TASE: NSTC) has won a $12.2 million deal to deliver a dispatching system for Czech electricity utility CEZ Distribution a.s. Ness will consolidate five systems into a single distribution network management system, which will enable Smart Grid projects and other services.
Ness Czech managing director Mirko Kalous said, "The energy and power distribution sector has long been a priority for Ness, placing us in a position where we can offer our partners a huge amount of knowledge and experience."
Ness also published its financial report for the second quarter of 2010. Revenue rose 10% to $139.7 million from $126.9 million for the corresponding quarter of 2009. The company beat the analysts' consensus estimate of $137.2 million revenue.
GAAP-based net profit from continuing operations fell 60% to $888,000 ($0.06 per share) for the second quarter from $2.2 million for the corresponding quarter. Non-GAAP net profit from continuing operations fell 13% to $3.8 million ($0.10 per share) from $4.3 million for the corresponding quarter. The company beat the analysts' consensus estimate of $0.09 earnings per share.
Cash flow from continuing operations was $400,000 and Ness had $53.1 million in cash and cash equivalents at the end of June. The company's backlog was $658 million, 3% more than a year earlier.
Ness's geographical revenue breakdown is roughly evenly split between North America ($43.5 million in the second quarter) and Israel ($42.4 million) Europe generates $38.6 million, with $2.4 million revenue coming from Asia.
In its guidance, Ness said that its third quarter results would in line with its second quarter results, but that the fourth quarter results would be "significantly better than third quarter results." The company reiterated its full-year revenue guidance of $575-585 million and non-GAAP earnings per share of $0.43-0.47.
Ness' share price fell 2.7% on Nasdaq yesterday to $4.77 million, giving a market cap of $182 million, and fell 2% by mid-afternoon on the TASE to NIS 18.46.
Published by Globes [online], Israel business news - www.globes-online.com - on July 28, 2010
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