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Descartes reports record Q3 revenue, net income falls, following acquisition

Canadian Press, The Canadian Press
0 Comments| December 4, 2013

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(The Canadian Press) WATERLOO, Ont. – Descartes Systems Group Inc. (TSX: T.DSG, Stock Forum) reports it had US$2.18 million of net income in its fiscal third quarter, a decline from the same period last year due to costs associated with an acquisition.

The Waterloo, Ont.-based company's net income for the three months ended Oct. 31, expressed in U.S. currency, amounted to three cents per share on a diluted basis, down from five cents a year earlier.

Descartes said the net income in the most recent quarter included $600,000 in restructuring charges and $300,000 of interest expense related to the acquisition of KSD Software Norway AS.

The Canadian logistics technology company's revenue for the third quarter was US$38.7 million, up 19% from $32.7 million a year earlier and up 2.0% from $38.2 million in the previous quarter.

Descartes says its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $11.4 million in the third quarter, up from $10.8 million a year earlier.

Adjusted EBITDA per share was 18 cents – up from 16 cents a year earlier and a cent above estimates compiled by Thomson Reuters.

The results were consistent with preliminary estimates issued last week when the company announced a change in upper management.

Descartes announced on Nov. 27 that long-time chief executive, Arthur Mesher, has retired as CEO and Chairman of the board due to health and personal issues.

Descartes' new CEO, Edward Ryan, joined the logistics technology company in 2000 and has been its Chief Commercial Officer since 2011. Scott Pagan, who also joined Descartes in 2000, was named Chief Operating Officer and President.


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