BroadSoft (Nasdaq: BSFT) today said second quarter revenue increased 63 percent year-over-year to $32.2 million; a significant jump in license revenue--it improved 82 percent to $19.2 million--pumped earnings up to $15.8 million, or 32 cents per share for the quarter. In May, the company forecast 9 cents to 11 cents EPS on $28 million to $29 million of revenue.
The results, said the company, are due in large part to continued demand across the company's product line, especially from North American service provoders.
"We believe our financial performance for the first half of 2011 demonstrates our ability to execute our long-term strategy of enabling our customers to deliver innovative, real-time communications services to their subscribers," said Michael Tessler, president and CEO of BroadSoft.
"Our margins and profitability improved significantly relative to last year's second quarter, as operating margins rose to 24 percent on a non-GAAP basis," said CFO Jim Tholen. "In addition, we generated $8.9 million in cash flow from operations during the second quarter and ended the quarter with cash, cash equivalents and marketable securities totaling $194.1 million."
BroadSoft said it anticipates revenue of $31 million to $33 million, in the third quarter, which represents increased growth from 39 percent to 48 percent over third quarter 2010 revenue of $22.3 million.
The company expects third quarter earnings on a non-GAAP basis of 20 cents to 23 cents per diluted common share and 16 cents to 19 cents per diluted common share on a GAAP basis.
For the full year, BroadSoft is increasing its guidance and now expects revenue of $127 to $130 million. It expects full year 2011 earnings on a non-GAAP basis of 90 cents to 95 cents per diluted common share and $1.10 to $1.15 per diluted common share on a GAAP basis .
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