IntraLinks' Q2 results meet Street, but Q3 outlook disappoints
IntraLinks Holdings (NYSE:IL), provider of software solutions for conducting financial transactions, said Wednesday second quarter sales spiked 20% while its profits broke even, but its third quarter outlook came in below market expectations.
For the three months ending June 30, revenues climbed 20% to $53.3 million.
New York-based IntraLinks reported that it broke even on a per share basis in the latest quarter, compared to a net loss of $3.9 million, or $1.79 per diluted share, last year.
Excluding one-time items, IntraLinks earned a profit of $5.7 million, or 10 cents a share.
Analysts expected earnings of 10 cents a share, on revenue of $52.3 million.
Enterprise revenue jumped 15% to $22.6 million. Sales from IntraLinks' mergers and acquisitions division leapt 29% to $21 million, while revenue from its debt capital markets unit logged in at $9.7 million, a 15% year-over-year increase.
However, gross margin during the quarter fell 50 basis points to 73.5%. Adjusted gross margin was 79.8%, a decrease of 170 basis points.
Looking ahead at the third-quarter, IntraLinks expects earnings of between 11 to 13 cents per share on revenue in the range of $54 and $56 million.
Analysts, on average, had expected earnings of 14 cents, on revenue of $54.9 million, according to Thomson Reuters.
IntraLinks cloud-based solutions enable organizations to control, track, search and exchange time-sensitive information inside and outside the firewall, all within a secure online environment. The company staffs about 454 people.
The New York-based company's shares plunged 37.17% to $7.64 on Wednesday morning.
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