Platinum Software Stock Dips After Earnings Report
IRVINE — Platinum Software Corp. shares fell 11% after the company’s earnings for the fourth quarter fell short of analysts’ estimates because of higher sales commissions.
The financial management software company’s earnings before charges failed to meet analysts’ estimates of 5 cents per share, according to Michael Simmons, chief financial officer. He said commissions related to record software sales were $500,000 more than expected.
The stock fell $1.44 Wednesday to $11.50 in heavy trading on the Nasdaq market.
The company said it had a fourth-quarter loss of $3.49 million, or 18 cents a share, after charges, compared with a year-earlier loss of $3.05 million, or 17 cents. Revenue rose to a record $16.7 million from $10.4 million.
The company said it would have posted net income in the fourth quarter without the purchase of closely held Clientele Software Inc., which was completed on June 30 for $11 million in stock. The purchase will expand Platinum Software’s business software line to include customer service products.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
