Quest Software Results In Line With Lowered EstimatesTuesday, August 2, 2011
Aliso Viejo-based Quest Software Inc., a maker of business software, on Tuesday reported second-quarter results in line with estimates that were lowered last month.
Quest reported total revenue of $203 million, up 9% from the same quarter a year ago and up a bit from analysts’ expectation of $202 million.
Quest’s net income for the second quarter was $6.3 million, down from $17.4 million a year earlier.
Quest last month lowered its sales and profit outlook for the second quarter and the year. The revised outlook was prompted by slower returns from recent acquisitions.
“We were not pleased with Q2 results but feel confident about the strategic direction in which Quest is headed,” said Quest Chief Executive Doug Garn.
In May, Quest bought Montana’s RemoteScan Corp., a software maker that tracks scanners and other imaging devices on corporate networks.
In the first quarter, the company bought BakBone Software Inc., a San Diego-based data protection software maker for $55 million.
Earlier this year, Quest took a stake in Irvine security software startup SecureAuth Corp.
Quest makes software that manages and improves on other business applications by Microsoft Corp., Oracle Corp., IBM Corp. and others.
The company closed the quarter with $281.2 million in cash and investments, down nearly $115 million
from the end of March. This was due to some $120 million in stock repurchases during the second quarter.
Quest is Orange County’s third-biggest software maker by revenue with some $800 million in yearly sales and had a recent market value of $1.6 billion.
Its shares remained flat in afterhours Tuesday trading. Quest’s shares are down more than 30% since the beginning of the year.