January 12, 2011 / 10:23 PM / 9 years ago

UPDATE 1-Blackboard buys edu services co; sees weak Q1 profit

* Sees Q1 adj EPS $0.24 vs est $0.36

* Completes Presudium buy for $53 mln in cash

* Sees acquisition hurting FY11 adj EPS by $0.10

Jan 12 (Reuters) - Blackboard BBBB.O, an online learning-software company, said it bought privately held Presidium Inc for $53 million in cash to boost its student services, and forecast first-quarter adjusted earnings below analysts’ estimates.

Blackboard, which sees Reston, Virginia-based education services company Presidium adding $27 million to its 2011 adjusted sales, said it expects the acquisition to hurt 2011 adjusted earnings by 10 cents.

“In 2011, we will be making additional investments in support of their technology and operations, and we expect to re-accelerate growth rates in 2012,” Blackboard Chief Executive Michael Chasen said in a statement.

Presidium, founded in 2003, operates 24-hour outsourced contact centers to handle services such as registration, bursary, and financial aid for students.

Blackboard, which bought Elluminate Inc and Wimba Inc for about $120 million in cash during April-June, has been expanding its virtual classroom technology offerings.

The company forecast first-quarter adjusted earnings of 24 cents a share on adjusted sales of $121.0 million.

Analysts on average were looking for earnings of 36 cents a share on sales of $114.9 million, according to Thomson Reuters I/B/E/S.

Blackboard shares, which have shed 11 percent of their value over the last one year, were down 77 cents, or 2 percent, at $39.90 in extended trade. They closed at $40.67 on Wednesday on Nasdaq.

For alerts double click [ID:nWNAB4241] (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Maju Samuel)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below