- Raymond James and Cowen have upgraded BroadSoft (BSFT) to Outperform after shares fell 19.4% due to yesterday's Q1 miss and soft Q2 EPS guidance.
- On the CC (transcript), BroadSoft mentioned weak North American software orders pressured Q1 results, but promised a Q2 rebound. Its gross margin decline was attributed to cloud business investments (affected subscription/maintenance margins), and its Q2 EPS forecast on sales/R&D investments.
- The company also stated a major deal with a major international carrier is now expected to produce $18M in 2014 revenue, up from a prior $15M, and reported of strong tier-1 interest in its BroadCloud unified communications managed services.
- Goldman's Simona Jankowski observed software license revenue would've been down ~30% Y/Y in Q1 if not for the large deal, and asked if weakness in other accounts was offsetting the deal's impact (given the new full-year forecast). CFO James Tholen insisted there weren't any "fundamental changes."
at CNBC.com (Nov 6, 2014)