Descartes Systems Q3 Earnings Fall

(RTTNews) - Descartes Systems Group Inc. (DSGX, DSG.TO), a provider of federated network and logistics technology solutions, Wednesday reported a drop in earnings for the third quarter mainly as the expenses and taxes more than offset the growth in revenue.

The company earned $2.2 million or $0.03 per share, compared with $3.1 million or $0.05 per share a year earlier. Descartes Systems stated that earnings results were affected by restructuring charges of $0.6 million in relation to the ongoing integration of KSD Software Norway AS, a company Descartes Systems acquired in May, and $0.3 million of interest on the acquistion line of credit.

For the third quarter, research and development expenses increased to $6.83 million from $5.22 million a year earlier and amortization charges on intangible assets were recorded higher at $4.6 million from $3.7 million a year ago.

For the three months to October, adjusted EBITDA rose to $11.4 million, or $0.18 per share, from $9.9 million, or $0.16 per share, a year earlier.

Revenues increased to $38.8 million from $32.7 million a year earlier, chiefly reflecting a 20 percent rise in services revenues to $35.6 million.

Tuesday, the stock closed at $13.89 on the Nasdaq.