UPDATE 1-TNS forecasts FY'09 rev below Street; shares down

Mon Nov 2, 2009 5:57pm EST

* Sees FY'09 rev $474-$478 mln vs est. $482.29 mln

* Q3 adj EPS $0.65 vs est. $0.62

* Shares down 9 percent after the bell

Nov 2 (Reuters) - Data communications company TNS Inc (TNS.N) posted better-than-expected quarterly results, helped by the acquisition of Communication Services Group, but it trimmed its revenue outlook for the year, sending its shares down 9 percent in after-market trade.

For the third quarter, net income rose to $3.2 million, or 12 cents per share, from $1.9 million, or 7 cents per share, a year ago.

Revenue rose 58 percent to $140 million. Revenue from the telecom services division rose $55.9 million to $72.4 million due primarily to the inclusion of Communication Services Group it acquired on May 1, 2009.

Excluding items, the company reported a profit of 65 cents per share.

Analysts were expecting a profit of 62 cents per share, before items, on revenue of $140.81 million, according to Thomson Reuters I/B/E/S.

For fiscal 2009, the company expects a profit of $2.12 to $2.18 per share, excluding items, on revenue of $474 million to $478 million.

Analysts are looking for a profit of $2.15 a share on revenue of $482.3 million.

Slight delays in the timing of customer implementations, caused about $2 million in revenue to shift into early 2010 from fourth quarter, the company said in a statement.

Shares of the company were trading down 9 percent at $26.25 in post-market session. They closed at $28.90 Monday on the New York Stock Exchange.

For alerts, please double click [ID:nWNAB8544] (Reporting by Mansi Dutta in Bangalore; Editing by Anil D'Silva)

Related Quotes and News

Company
Price
Related News
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.