MARKHAM, Ont. – Enghouse Systems Ltd. (TSX:ESL) raised its quarterly dividend on Tuesday as it reported a first-quarter profit of $3.4 million and a 37 per cent increase in revenue.
The business software company said it would now pay a quarterly dividend of eight cents per share, up from 6.5 cents per share.
Based on the Enghouse closing share price, the stock will have an annual yield of about 1.7 per cent.
The increased dividend came as the company said it earned 13 cents per diluted share for the quarter ended Jan. 31, down from $4.1 million or 16 cents per share in the same period a year ago.
However, revenue for the quarter increased to $42 million, up from $30.5 million a year ago, boosted by acquisitions.
“Enghouse remains committed to diversifying its revenue stream and accelerating its expansion into new markets and continues to seek further acquisitions to grow its market share,” the company said in a statement.
Last week, Enghouse completed the acquisition of Norwegian company Locus Holdings AS for $14 million.
Locus is a supplier of fleet management systems for the public safety, transport and logistics sectors in Scandinavia.
Shares in Enghouse, which reported its results after the close of markets, were up 22 cents at $18.97 on the Toronto Stock Exchange on Tuesday.