Why BroadSoft Shares Plunged

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of BroadSoft (NAS: BSFT) have plunged today by 23% at the low after the software and services company reported earnings with weak guidance.

So what: Revenue in the first quarter rose 29% to $38.3 million, with non-GAAP earnings per share of $0.29. Those figures bested consensus estimates for both the top and bottom lines, but the soft guidance overshadowed the earnings beat.


Now what: Second-quarter revenue is expected to be in the range of $36 million-$38 million, leading to non-GAAP earnings per share of $0.17-$0.23. The Street was looking for second-quarter earnings of $0.28. The full-year picture looks a little better, with fiscal 2012 sales expected to be between $158 million and $162 million with adjusted earnings of $1.22-$1.32 per share. CFO Jim Tholen warned that the environment is "a little more challenging now than it was a year ago, in terms of carrier buying patterns."
 

At the time this article was published Interested in more info on BroadSoft? Add it to your watchlist byclicking here.Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners