Mixed Quarter for J2 GlobalWednesday, February 15, 2012
J2 Global Communications Inc., which has been on an acquisition spree to expand its cloud-based tech services, said it increased its fourth quarter profit by 11 percent, although revenue was slightly below Wall Street expectations.
The Hollywood provider of e-mail messaging and online data backup services late Tuesday reported net income of $29.8 million (62 cents a share), compared with $26.9 million (58 cents) in the same period a year earlier. Revenues rose nearly 20 percent to $85.1 million.
Adjusted for one-time items, net income was $30.6 million or 64 cents a share. Analysts surveyed by Thomson Reuters on average expected adjusted earnings of 63 a share on revenue of $85.8 million.
The company’s board has increased the quarterly cash dividend by 2.4 percent to 21 cents a share, to be paid on March 12. For the current year, the company expects revenue of $345 to $365 million. The Wall Street consensus is for revenue of $358 million.
Chief Executive Hemi Zucker said j2 Global had integrated substantially all of Protus IP Solutions, the largest acquisition in the company’s history, and was significantly broadening its suite of business cloud services with the addition of online backup provider KeepItSafe, e-mail marketing firm Campaigner, and customer relationship management services provider LandslideCRM.
“I am pleased with both our operational and financial performance,” said Zucker in a statement. “We are making significant incremental investments to grow our new service offerings, expand our business internationally and develop enhanced cross-selling capabilities.”
Shares were up 29 cents, or about 1 percent, to $29.85 in midday trading on the Nasdaq.