Ness Technologies beats EPS estimates

CFO Ofer Segev: Israel will be one of the company's strongest growth engines.

IT integrator Ness Technologies Ltd. (Nasdaq: NSTC; TASE: NSTC) posted 11.7% revenue growth in 2010, and expects more growth in 2011.

Ness posted $571.8 million revenue in 2010, including $157.4 million for the fourth quarter, mostly in line with analysts' consensus of $157.3 million.

On a non-GAAP basis, net profit from continuing operations was $6.7 million for the fourth quarter, and $17.9 million for 2010 as a whole, 5% more than in 2009.

Fourth quarter earnings per share of $0.17 beat the analysts' consensus of $0.14.

In its 2011 guidance, Ness said it expects 4.1-5.8% revenue growth to $595-605 million, less than the analysts' consensus of $608.7 million. The company predicts earnings per share of $0.57-0.63, above the analysts' consensus of $0.56.

Ness CFO Ofer Segev said that Israel will be one of the company's strongest growth engines. "In Europe, we still don’t expect serious growth, because the situation there has not returned to normal. We'll have strong growth in Israel. There have been a lot of rumors about the closing of activities and moving, but the 2010 results in Israel were the best in our history, in both profits and sales."

Ness share price rose 4.2% by mid-afternoon on the TASE today to NIS 23.25, after rising 2.7% on Nasdaq yesterday to $6.15, giving a market cap of $234 million, and rising a further 1% in after-hours trading.

Published by Globes [online], Israel business news - www.globes-online.com - on February 2, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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