BroadSoft Q1 Loss Widens, Shares Down - Update

(RTTNews) - BroadSoft Inc. (BSFT) Monday said its first-quarter loss widened from a year ago, hurt largely by higher operating costs and lower-than-anticipated revenues. Shares of the communication software maker plunged over 20 percent on the Nasdaq.

The Gaithersburg, Maryland-based company's first-quarter loss widened to $7.5 million or $0.26 per share from $2.3 million or $0.08 per share a year ago. Adjusted earnings were $2.1 million or $0.07 per share. On average, 13 analysts polled by Thomson Reuters expected a profit of $0.10 per share for the quarter. Analysts' estimates typically exclude special items.

BroadSoft's revenues grew 11 percent to $43.9 million from $39.6 million a year ago. Analysts had a consensus revenue estimate of $44.48 million for the quarter.

Gross margins dropped to 70 percent from 75 percent last year, while operating costs, as a percent of revenues, increased to 91 percent from 85 percent last year.

Looking forward to the second quarter, BroadSoft anticipates adjusted earnings of $0.17 to $0.31 per share and revenues of $48 million to $52 million. Analysts currently expect second-quarter profit of $0.33 per share on revenues of $50.39 million.

For the full year 2014, BroadSoft continues to expect adjusted earnings of $1.26 to $1.46 per share and revenues of $206 million to $212 million. Analysts currently expect full year profit of $1.35 per share on revenue of $208.75 million.

BSFT is currently trading at $19.98, down $5.02 or 20.10%, on a volume of 3.4 million shares.