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WebEx Communications third quarter earnings rose just 7% as revenue climbs, but results missed Wall Street expectations. WebEx Communications Inc., a provider of Web conferencing systems, said Thursday October 27th that third-quarter profit rose 7 percent as revenue climbed, but results were slightly below Wall Street's expectations. Net income increased to $12.7 million, or 26 cents per share, from $11.8 million, or 26 cents per share, last year. Revenue rose 23 percent to $78.6 million from $64 million on the strength of worldwide growth of it's web conferencing software.
Adjusted earnings were $13.1 million, or 27 cents per share, compared with adjusted earnings of $11.8 million, or 26 cents per share, last year.
Wall Street Analysts were looking for better earnings of 28 cents per share and higher revenue of $79.1 million, according to the most recent Thomson Financial poll.
WebEx shares fell $4.17, or 15.4 percent, to $22.83 in after-hours activity on the 27th.
WebEx also pegged fourth-quarter results below analysts' previous expectations. WebEx expects earnings of 26 cents to 28 cents per share on revenue of $81 million to $83.5 million. Adjusted earnings are expected to be 27 cents to 29 cents per share. Analysts have predicted adjusted earnings of 30 cents per share on sales of $85.3 million.
For fiscal 2006, WebEx expects revenue of $370 million to $385 million, versus analysts' projection for $379.2 million in sales. The company said in a statement that it's leading sales growth engine continues to be it's leading enterprise web conferencing software. |
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