Jan 21 Translation software maker SDL Plc
said 2013 results would be above market estimates,
helped by a restructuring of its business, sending its shares up
The company estimates revenue for the year ended Dec. 31
2013 to be between 265.8 million pounds ($436.45 million) and
266.3 million pounds, while adjusted pretax profit would be
between 8 million pounds and 8.3 million pounds.
SDL said the market was expecting revenue of 262.1 million
pounds and a profit of 7.3 million pounds.
Shares in the company were trading at 374 pence at 0951 GMT,
making it one of the top percentage gainers on the London stock
SDL said the company has gone through significant
restructuring to provide better customer, product and cost
alignment as well as investments in R&D, sales & marketing and
"The in-line result suggests the translation services
business had a good run into year-end with margins improving
from the lows of the first half," Investec Securities analyst
Julian Yates said in a note.
The company had lowered its full-year profit outlook in
October citing a weaker-than-expected performance across its
language services and technology divisions in the third quarter.
"The company appears to have got its arms around its
organisation and has created a better 'route to market'. Any
kind of 'end of the beginning' news is a big positive," Panmure
Gordon analysts George O'Connor and Adam Lawson wrote in a note.
The analysts maintained their "hold" rating on the stock and
raised their price target to 336 pence from 270 pence.
SDL is expected to report full-year preliminary results on
($1 = 0.6090 British pounds)
(Reporting by Roshni Menon in Bangalore)