TORONTO – Constellation Software Inc. (TSX:CSU) says its adjusted net income was US$53 million in the first quarter, a 60 per cent increase compared with the same time last year but below analyst estimates.
The Toronto-based company’s revenue increased by 54 per cent to $394.8 million, from $258 million a year earlier, due to mainly to acquisitions and some internal growth.
Its net income under standard accounting was $8.9 million or 42 cents per share, down from $9.2 million or 43 cents per share in the first quarter of 2013..
The adjusted net income excluded amortization of intangible assets, which cost $42.8 million in the first quarter of 2014 and $26.5 million in the same period last year. It also excludes a $1.6-million income tax expense this year and a $2.3-million tax recovery last year.
Analyst estimates compiled by Thomson Reuters suggest Constellation missed expectations on several counts. The consensus was for US$2.83 per share of adjusted profit, $1.02 per share of net income and $402 million of revenue.
Constellation operates in two segments, one focused primarily on government and government related customers and the other primarily on commercial customers.