UPDATE 1-LogMeIn says Intel may end services deal; shares fall

Wed Jul 28, 2010 5:36pm EDT

* Says Intel may end marketing deal

* Q2 adj EPS $0.20 vs est $0.17

* Q2 rev up 30 pct to $23.5 mln vs est $22.6 mln

* Ups 2010 outlook

* Shares down 11 pct

July 28 (Reuters) - Software maker LogMeIn Inc (LOGM.O) posted strong quarterly results, but said it expects Intel Corp (INTC.O) to end its connectivity service deal with the company a year early, sending LogMeIn shares down 11 percent in trading after the bell.

The company said if the deal is terminated, Intel will not owe any fees associated with 2011 but will be required to pay it a termination payment of $2.5 million.

Intel has paid LogMeIn a minimum license and service fee of $1.3 million per quarter.

The company, which sells software that helps businesses and consumers gain access to their computers remotely by using the Internet, raised its full-year adjusted earnings outlook to between 70 cents to 75 cents a share, on revenue of $93.5 million to $94.5 million.

It's prior view was profit of 64 cents to 68 cents a share, on revenue of $91 million to $92.5 million.

The company's second-quarter profit rose more than five-fold to about $9 million, or 37 cents a share. [ID:nWNAB0544]

Shares of the Woburn, Massachusetts-based company were trading down $3 at $25.40 in extended trade. They closed at $28.40 on Nasdaq. (Reporting by Sayantani Ghosh in Bangalore; Editing by Anthony Kurian)

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