MOUNTAIN VIEW, Calif.-Ditech Communications Corp. announced its fiscal 2006 second-quarter results, reporting a net loss of $1.4 million, or 4 cents per share. The numbers were a considerable decrease from the company’s year-ago net income of $45.8 million, $37.5 million of which came from the release of a deferred tax valuation allowance, according to the company.
The loss was smaller than analysts expected however, which sent the company’s stock up by $1.78 to trade at $8.23 per share Friday afternoon. This morning, the stock opened at $8.52 per share reached $8.98 per share in mid-afternoon trading.
The company posted second-quarter revenues of $10.5 million, up slightly from the first quarter’s $10.3 million and down 57 percent from year-ago revenues of $24.3 million.
“We started the growth engine of the company in the second quarter,” said Tim Montgomery, president and chief executive of Ditech. “Our second-quarter results came in slightly better than expected and our international business initiatives gained traction throughout the quarter. Our core North American voice processing business continues to perform well, and with the anticipated rise in international activity, we enter the third quarter with increasing momentum.”
Looking forward, the company said it expects its third-quarter revenues to increase by 30 percent based on bookings forecasts, revenue deferrals and the timing of orders. In addition, Ditech said it expects its third-quarter gross profit, as a percentage of revenue, to be in the high 60-percent range, and expects operating expenses to increase 3 to 5 percent over second-quarter levels.
Ditech is a voice equipment supplier for mobile and wireline operators for circuit- and packet-based networks.
