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SUBSCRIPTION REVS DRIVE DELTEK
Deltek turned in a strong quarter as rapidly growing revenue from term licenses and subscriptions made up for low growth from traditional perpetual licenses. Revenue from the first category reached $10.9 million for the third quarter ended September 30, a dramatic increase from $193,000 in last year’s corresponding quarter before the Reston, Va.-based company made its move towards term licenses.
Meanwhile perpetual license revenue in the most recently ended quarter was $15.8 million, up 2.6 percent from $15.4 million a year earlier. Total revenue was $85.2 million, 30-percent higher when compared to $62.2 million in last year’s third quarter. Net income for the quarter was $3.1 million, a rebound from last year’s loss of $4.1 million. Also as tends to be the case with so many software companies, revenue from maintenance and support services rose nicely. That category grew to $40.5 million, up 19.4 percent from $33.9 million a year ago. In an earnings conference call, CEO Kevin Parker said that the company’s acquisitions, Maconomy and the businesses that have been melded together under Federal Intelligence Solutions for the government contractor market, had strongly contributed. The company also focused on cost-cutting following those deals and took a $2.6 million restructuring charge as a result. Specific cost-cutting steps were not spelled out. Deltek also took advantage of strong cash flow to make an additional $5 million payment on its debt. But as it has in the past few quarters, Deltek kept spending into its growth cycle. Take out the restructuring charge and expenses would have been $47.4 million, just over 10 percent more than expenses a year earlier.
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