BroadSoft Plunges on Fiscal Q4 Earnings, Light Full-Year Guidance

Shares of BroadSoft Inc.

are under pressure on Monday after the company released its fiscal Q4 earnings results prior to the opening bell. Heading into the close of trading, BSFT had plunged more than 17% to $33.80. For the fourth-quarter, the company reported fourth-quarter net income of $5.5 million or $0.19 per share, compared to $11.2 million or $0.41 per share, in the year ago period. On a non-GAAP basis, which is comparable to analysts' consensus, BSFT reported net income of $10.6 million or $0.38 per share, compared to $12.2 million or $0.44 per share, last year. This compared to Wall Street analysts' consensus EPS estimates of $0.28. Total revenue in the quarter was up 13 percent to $40.55 million from $35.77 million in last year's comparable quarter. This also exceeded analysts' consensus of $36.99 million. Looking ahead to Q1, BSFT sees non-GAAP earnings per share between $0.17 and $0.23 on revenues of $36 million to $38 million. This compares to analysts' consensus EPS estimates of $0.20 on revenue of $34.70 million. For the full year 2012, the company anticipates non-GAAP EPS of $1.18 to $1.30 and revenues between $158 million to $162 million. Analysts are expecting BSFT to report full-year EPS of $1.20 on revenue of $163.86 million. While BroadSoft's fiscal fourth-quarter earnings results were strong, and the company's first-quarter guidance was in-line with Street estimates, it appears that investors are reacting primarily to BSFT's light full-year revenue outlook in selling off the stock.