Descartes Names Edward Ryan CEO, Sees Q3 Revenue Above Estimates - Update

(RTTNews) - Descartes Systems Group Inc. (DSGX), a provider of federated network and logistics technology solutions, Wednesday said Edward Ryan has been appointed as the company's Chief Executive Officer, in accordance with its leadership succession plan. Further, the firm said it sees revenues for the third quarter above Street estimates.

Ryan served as Descartes' Chief Commercial Officer since 2011, in addition to several other senior executive roles that he served after joining the firm in 2000.

He replaces Arthur Mesher, who served as Descartes' CEO since 2004. He joined the company as Executive Vice President, Strategic Development, in 1998. Mesher retired as CEO and Chairman of the Board due to health and personal issues.

According to the company, the appointments are based on Ryan's and Pagan's proven ability to deliver over the last thirteen years. Descartes noted that the two together have led the firm's day-to-day operations for the past several years and have had great success in working with its customers and delivering strong results to its shareholders.

Ryan said, "Descartes has a proven track record of helping our customers to improve the productivity and performance of their businesses through our cloud-based solutions and related services. Our continued focus on helping customers achieve results using our technology and people will be a critical driver of our future strategic, functional and geographic expansion."

Further, Descartes said Scott Pagan has been appointed as its President and Chief Operating Officer. Pagan, who joined Descartes in 2000, has been its Chief Corporate Officer and Corporate Secretary since 2011.

Descartes is scheduled to report its third-quarter financial results on December 4. The company expects to report revenues in the range of $38.5 million to $38.8 million. On average, 7 analysts polled by Thomson Reuters expect revenues of $38.34 million for the quarter.

The firm sees income before income taxes of $4.1 million to $4.3 million and adjusted Earnings Before Interest, Tax, Depreciation and Amortization or EBITDA is estimated in the range of $11.3 million to $11.4 million.

In the preceding second quarter, the firm had reported net income of $1.74 million or $0.03 per share on revenues of $38.19 million.

DSGX closed Tuesday marginally higher at $13.91.