AVG Technologies Q2 Profit Tops View, Revenue Misses; Stock Falls

(RTTNews) - AVG Technologies N.V. (AVG), a developer of Internet security software and online service solutions, Thursday lifted its full year outlook after reporting increased profit for the second quarter that topped estimates. The stock fell in after-hours trading as quarterly revenues missed Wall Street view.

Net income increased to $21.7 million or $0.39 per share from $11.05 million or $0.20 per share in the prior year.

The latest results include $1.6 million in share based compensation expense, $2.3 million in acquisition amortization, $3.0 million in one-off items together with a $4.8 million adjustment to normalize to a tax rate of 14 percent.

Adjusted net income was $29.4 million or $0.54 per share. In the prior year, adjusted earnings totaled $17.3 million or $0.32 per share. On average, six analysts polled by Thomson Reuters expected the company to report earnings per share of $0.42 for the quarter. Analysts' estimates typically exclude special items.

Revenue increased 22 percent to $100.38 million from $82.52 million. Analysts expected revenue of $100.50 million for the quarter.

Subscription revenues climbed to $61 million from $47.35 million while Platform-derived revenues advanced to $39.38 million from $35.17 million.

Looking ahead to the third quarter, the company expects earnings per share in the range of $0.26 to $0.35 and non-GAAP earnings per share between $0.44 and $0.49. Revenue is estimated to be in the range of $100 million to $104 million. Analysts expect the company to report third-quarter earnings per share of $0.46 on revenue of $104.37 million.

AVG raised its outlook for fiscal 2013. The company now expects non-GAAP earnings per share to be in the range of $2.00 to $2.10 and earnings per share in the range of $1.35 to $1.55. Revenue is estimated to be in the range of $416 million to $427 million. Analysts expect the company to report annual earnings of $1.91 per share on revenue of $418.79 million.

The previous forecast was for earnings in the range of $1.29 to $1.49 per share and adjusted earnings of $1.74 to $1.94 per share. Revenues were projected in the range of $414 million to $422 million.

AVG closed up 2.1 percent at $22.77 on Thursday, but fell 7.7 percent in the extended trade.