UPDATE: Oppenheimer Downgrades BroadSoft to Perform; 2013 to Become Transitional

Oppenheimer downgraded BroadSoft

from Outperform to Perform. Oppenheimer commented, "We downgrade BSFT to Perform as 2013 becomes a transition year— code for flat—for the company. Its core business while strong is seeing a deceleration on the consumer side. Management indicated that neither enterprise nor new product (BroadCloud/BroadTouch) growth could offset it. This was reflected in 2013 guidance: $1.10-1.35 vs Street/Opco estimates of $1.68/$1.66. What's interesting and ultimately pushing us to the sideline is management's expectation for longer-term growth. While the EPS guidance miss is primarily revenue related, we can't look past higher than expected opex which we believe management is increasing to set itself up for 2014/2015 opportunities. Opportunities we worry won't be there." BroadSoft closed at $30.91 on Wednesday.