Broadsoft (NASDAQ:BSFT, news, filings) has been making a habit of easily beating estimates, and did so again with this morning's first quarter results. The telecom infrastructure industry's migration toward cloud communications has been boosting the software and services, and BroadSoft has been well positioned to take advantage.
Revenues of $38.3M were down sequentially but easily above both the guided range and composite estimates - which had them at the midpoint. Non-GAAP earnings per share of $0.29 were even more favorable. Operating cash flow dipped into the red as they pre-paid for a multi-year third-party software arrangment - hmmm, I wonder what that was for.
Guidance for Q1 is for revenues of $36-38M and non-GAAP earnings per share of $0.17-0.23. If that sounds familiar it's because it's identical to the first quarter's guidance. It's a bit lighter than analysts projected, but to a lesser extent than their first quarter exceeded them. For the full year, however, they narrowed non-GAAP EPS guidance to the top end of the range: $1.22-1.30. Revenue guidance remains intact.
Update: The stock is down rather sharply on Q2 guidance. Hmm, would it have been better to meet guidance in Q1, and save the extra $0.06 for later to make the traders happy? Their business tends to be a bit lumpy that way, ah well.