Descartes Systems (NASDAQ:DSGX) shares swung higher Thursday after the company reported record second-quarter revenue, driven higher by acquisitions and stronger US demand.
The provider of network and logistics technology posted net income of $2 million, or 3 cents a share, compared with $800,000, or 2 cents a share, in the same quarter last year.
Revenue for the Ontario-based company was $25.2 million, up 35% from $18.6 million in the earlier-year period, and fueled by recently-completed acquisitions and higher demand in the US, up 45%.
The results, however, missed average analyst estimates polled by Thomson Reuters of 10 cents a share and $26.11 million, respectively.
“Descartes continues to drive excellent operating performance with a record level of quarterly revenues, clearly confirming the success of the company's strategic focus,” said Descartes CFO Stephanie Ratza. “Our consolidation strategy, combined with our market position and operational execution, has delivered operating growth in our business.”
Last quarter the company acquired Belgian-based Routing International NV, with its flagship solution suite WinRoute, for $4.2 million.
“We're on course strategically and look forward to the opportunities that lie ahead for Descartes,” said Art Mesher, Descartes' CEO.