Netezza 3Q profit falls as compensation costs grow

AP News
Posted: Nov 24, 2009 6:00 PM

Data storage and analysis company Netezza Corp. said Tuesday its profit dropped 75 percent in the fiscal third quarter as stock-based compensation costs increased and revenue declined.

Netezza said its profit fell to $850,000, or a penny per share, in the quarter ended Oct. 31. That compares with earnings of $3.5 million, or 5 cents per share, a year ago.

Excluding stock-based compensation expenses, the company said it earned $3 million, or 5 cents per share, in the latest period. On that basis, results beat analysts' 2-cent estimate according to a Thomson Reuters poll.

The company also reported greater sales and marketing costs, and research and development expenses.

Netezza's revenue fell 6 percent to $47.7 million from $50.6 million, but still edged out analysts' $47.2 million average forecast. While product revenue fell 13 percent to $33.3 million, service revenue climbed 24 percent to $14.4 million.

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In aftermarket trading, Netezza shares picked up 8 cents, to $10.82 from an earlier $10.74 close. The stock has traded between $4.78 and $11.78 over the last year.