BroadSoft Tops Q1 Estimates, Shares Surge

Shares of

jumped over 6 percent in pre-market trading after the company reported better-than-expected results for the first quarter and raised its FY15 earnings guidance. The Gaithersburg, Maryland-based company reported a quarterly loss of $2 million, or $0.07 per share, versus a year-ago net loss of $7.5 million, or $0.26 per share. Excluding items, the company earned $0.24 per share. Its revenue climbed 27 percent year-over-year to $55.7 million. However, analysts were expecting a profit of $0.17 per share on revenue of $54.3 million. The average estimate among 7 Estimize users was for earnings of $0.19 per share and revenue of $54.92 million. GAAP income from operations came in at $0.1 million, while non-GAAP income from operations came in at $7.7 million for the quarter. "In the first quarter, we delivered strong earnings and cash flow results and we were particularly pleased with the level of software billings in what is typically our seasonally most challenging quarter," said Jim Tholen, chief financial officer, BroadSoft. "We entered 2015 with a focus on investing to deliver against our substantial market opportunity and we plan to continue to drive those investments for the remainder of the year." For the current quarter, BroadSoft projects earnings of $0.24 to $0.36 per share, on revenue of $59 million to $64 million. Analysts had expected earnings of $0.32 per share on revenue of $61.5 million. For the full year, BroadSoft now projects adjusted earnings of $1.42 to $1.66 per share, on revenue of $260 million to $268 million. The company had earlier expected earnings of $1.40 to $1.64 per share. BroadSoft shares gained 6.05 percent to $34.20 in pre-market trading.