Mercury Interactive incurred a net loss of $6.66 million for the third quarter to 30 September, mainly due to acquisition-related charges and impairment charges relating to real-estate consolidation.
However, the Nasdaq-listed business technology optimisation group, which also has an office in SA, says it expects a profitable fourth quarter.
The acquisition-related charges of $12.7 million resulted from the acquisition of Kintana, which was finalised in August. Kintana carried a price tag of about $225 million in cash and stock.
The results also include non-cash charges of $16.9 million relating to the impairment of a portion of the group`s facilities in Sunnyvale, California.
Excluding these and various recurring items, the group`s net income was $21.3 million.
Chairman, CEO and president Amnon Landan says that during the third quarter Mercury Interactive had record revenues, strong deferred revenues and a record number of large transactions.
<B>Salient figures</B>
Mercury Interactive results for the quarter to 30 September 2003.
Figures for the year-earlier period in parentheses:
Total revenues: $126.06m ($97.85m)
Income from operations: -$7.96m ($15.23m)
Net income: -$6.66m ($13.27m)
Net income per share: -$0.08 ($0.16)
Net income per share (diluted): -$0.08 ($0.15)
Total current assets: $964.16m ($666.89m - Dec `02)
Cash and equivalents: $621.4m ($349.12m - Dec `02)
Total current liabilities: $364.31m ($289.55m - Dec `02)
Net cash provided by operating activities: $22.24m ($27.95m)
Revenue for the period increased by 29.1% to $126.06 million from $97.85 million for the same period a year before.
The group`s management expects fourth quarter revenue of between $140 million and $148 million, with diluted earnings per share of $0.18 to $0.22. It recorded a diluted loss per share of $0.08 for the third quarter.
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