Firm declares new special dividend of $1.70, costing it approximately $19.3 million. Evolving Systems Inc.’s first-quarter profit dropped 19% as the networking-services company’s year-ago period benefited from discontinued operations.
The company also unveiled a $1.70 special dividend, following its $2 special dividend in January. The new special dividend should cost the company about $19.3 million. The company has also provided a quarterly dividend of 5 cents.
Shares were up 8.5% at $6.11 after hours following the dividend disclosure and as results beat expectations. The stock as of Tuesday’s close was down 24% so far this year.
The company provides software and services to the wireless, wireline and IP carrier markets. Its products help network operators with subscriber service activation, SIM card activation and mobile broadband activation.
Evolving Systems posted a profit of $758,000, or 7 cents a share, down from $933,000, or 8 cents a share, a year earlier. The year-ago period included 10 cents a share from discontinued operations. Revenue rose 9.6% to $5.9 million. Analysts polled by Thomson Reuters expected earnings of 3 cents a share and revenue of $5.1 million.
License fee and services revenue rose 20%, offsetting a 5.6% revenue slide in customer support. Total backlog was $12.5 million, up from $7.6 million a year ago, but down slightly from $12.6 million in the fourth quarter.