Keynote Systems, which provides performance management services for e-commerce companies, missed the consensus EPS by a penny and set guidance for Q1 below consensus. The stock fell by over 4% in late trading. Here were the key points from the earnings announcement, in the company's own words, and then a description of what really happened:
The reality: Keynote met "Company's Guidance", but it missed the consensus estimate of $0.05 by a penny, and also provided guidance for next quarter below consensus estimates of $0.06 in EPS and revenue of $14.1 million. 76% of Keynote's revenues came from subscriptions, and that amount rose by only 1% quarter over quarter.
- Diluted EPS of $0.04 Meets Company's Guidance
- Revenue of $13.6 Million up 40% Compared to the Same Quarter Last Fiscal Year
- Performance Management Solutions Revenue Up 143% Compared to Same Quarter Last Fiscal Year
- Sixth Consecutive Quarter of Increased Revenue and Sixth Consecutive Quarter of Profitability
- Twelfth Consecutive Quarter of Positive Cash Flow from Operations
- Entering into a plan to repurchase up to 2.0 million shares of common stock
Keynote currently expects that for the second fiscal quarter ending March 31, 2005:
- total revenue will be between $13.0 million and $13.6 million;
- total expenses will decrease by approximately 2% to 4% compared to the first quarter of fiscal 2005;
- diluted earnings per share will be between $0.03 to $0.06;
- cash flow from operations will be between $2.0 million to $2.5 million; and
- capital expenditures will be approximately $1.0 million, absent any acquisition costs or other extraordinary transactions.