Broadsoft Shrinks Profits As Sales Rise 7%

This quarter was a good one for Broadsoft's revenue, according to its just-released earnings report. The Internet-protocol telecommunications company's Q3 sales increased 7% compared with where they were this time last year, to $42.9 million. The increase was helped by a boost in the company's subscription and maintenance support segment.

Sales were solid, but Broadsoft's quarterly margins were lacking. The company spent $9.3 million more on its operating expenses this quarter than the same one a year prior, which caused profits to sink into the negative. Overall operating income was negative-$2.9 million, while net income came in at negative-$4.0 million.

Despite having some "short-term concerns" over the state of the industry's spending environment, Broadsoft CFO Jim Tholen was pleased by both the company's cash flow -- net cash from operating activities was up 24% compared with last year -- and its acquisition of British voice services company Hipcom, which he said was "central to our plans for the expansion of Cloud PBX services into Europe."

The article Broadsoft Shrinks Profits As Sales Rise 7% originally appeared on

Fool contributor Caroline Bennett and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story