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Q2 net income grows 13-fold at e-commerce platform provider ATG
Revenue at e-commerce platform company Art Technology Group Inc. rose 6% year over year to $44.4 million for the second quarter ended June 30, as net income surged 13-fold to $4.6 million, the company says.
Managing Editor, International Research
Art Technology Group Inc. reports a 13-fold year-over-year increase in net income along with a 6% rise in revenue for the second quarter ended June 30.
- Q2 revenue rose 6% to $44.4 million from $41.9 million.
- Q2 product license revenue rose 11% to $13.6 million from $12.3 million, as services revenue rose 6% to $30.9 million from $29.2 million.
- Q2 net income rose 13-fold to $4.6 million from $348,000.
- Sales and marketing expenses declined 5% to $12.5 million from $13.2 million.
- Expenses related to professional and other services declined about 10% to $14.2 million from $15.7 million
- Expenses related to research and development rose 4% to $7.7 million from $7.4 million.
- Non-GAAP net income, which excludes amortization of intangible assets, equity-based compensation and tax adjustments, rose 35.7% to $7.95 million from $5.86 million. GAAP stands for generally accepted accounting principles, the accounting standard used by publicly traded U.S. companies.
For the six months ended June 30, ATG reports:
- Revenue rose 10% year over year to $86.3 million from $78.5 million.
- Net income rose to $7.59 million from a year-ago loss of $494,000.
- Product license revenue rose 23% to $26.5 million from $21.6 million, as services revenue rose 5% to $59.8 million from $56.9 million.
- Non-GAAP net income rose 152% to $13.80 million from $5.48 million.
“Our results serve as evidence that healthy demand for e-commerce solutions continued, despite a tough economy,” says president and CEO Bob Burke. “In fact, many aspects of this economy are forcing companies to invest in e-commerce in order to drive revenue at a lower cost.”
Adds senior vice president and chief financial officer Julie Bradley: “Revenue, license bookings and net income were at the high end or exceeded our previously stated guidance ranges. Based on our pipeline, healthy trends in our business and continued focus on cost containment, we remain optimistic about our ability to post revenue and earnings growth in the second half of 2009.”