Guidewire Software rises after hours on 3Q results

Guidewire Software rises after hours as adjusted 3rd-qtr income and revenue top estimates

Associated Press

NEW YORK (AP) -- Insurance industry software provider Guidewire Software Inc. said Tuesday that it took a loss in the fiscal third quarter, but its results were stronger than Wall Street expected and its shares climbed in after-hours trading.

The Foster City, Calif., company reported greater stock-based compensation costs and other expenses. If those costs and other one-time charges are excluded, however, the company said it earned 4 cents per share — 2 cents more than analysts expected. Its revenue climbed 20 percent as service revenue improved.

Shares climbed $3.70, or 9.1 percent, to $44.49 in aftermarket trading.

For the quarter ended April 30, Guidewire said it lost $2.7 million, or 5 cents per share. A year ago it reported net income of $3.1 million, or 5 cents per share. Its adjusted net income fell to 4 cents per share from 10 cents per share in the third quarter of fiscal 2012. Revenue grew to $68.3 million from $57 million. Service revenue jumped 31 percent to $36.2 million, while license and maintenance revenue improved by smaller amounts.

Analysts expected net income of 2 cents per share and $63.5 million in revenue, according to FactSet.

Shares of Guidewire Software gained 71 cents to $40.79 Tuesday.

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