Thursday, February 28, 2013

BroadSoft forecasts lower current-quarter revenue; shares fall

(Reuters) - Internet communications company BroadSoft Inc forecast current-quarter revenue below analysts' estimates, sending its shares down 24 percent after market.

BroadSoft, which sells software that telecom companies use to provide voice and video services, forecast first-quarter revenue of $37 million to $40 million, while analysts were expecting $43.6 million on average.

The company said it expects its growth to be affected by weakness in its consumer applications division prior to service providers ramping up their voice-over-LTE investment.

Consumer applications are part of the company's license software business, which accounts for more than half of its total revenue.

Network operators globally are currently in a multi-year investment cycle to upgrade mobile networks to a 4G technology known as LTE, which offers up to 10 times faster download speeds.

BroadSoft's fourth-quarter results, however, were above analysts' expectations. Excluding one-time items, the company earned 47 cents per share, ahead of analysts' expectations for 41 cents per share.

Revenue rose 13 percent to $45.8 million, also ahead of the $45.7 million Wall Street had estimated, according to Thomson Reuters I/B/E/S.

Net income fell to $4.9 million, or 17 per share, from $5.5 million, or 19 cents per share, a year earlier.

Shares of the Gaithersburg, Maryland-based company fell to $23.42, after closing at $30.91 on Wednesday on the Nasdaq.

(Reporting by Neha Alawadhi in Bangalore; Editing by Sreejiraj Eluvangal)

Source: http://news.yahoo.com/broadsoft-forecasts-lower-current-quarter-revenue-shares-fall-234846640--finance.html

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