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Translation software maker SDL sees FY results above estimates
January 21, 2014 / 9:55 AM / 4 years ago

Translation software maker SDL sees FY results above estimates

Jan 21 (Reuters) - Translation software maker SDL Plc said 2013 results would be above market estimates, helped by a restructuring of its business, sending its shares up 10 percent.

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 Exchange.

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 infrastructure.

“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 March 18. ($1 = 0.6090 British pounds) (Reporting by Roshni Menon in Bangalore)

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