j2 Global Posts Mixed 1Q Earnings - Analyst Blog
May 10 2013 - 8:50AM
Zacks
Yesterday, after
the closing bell, j2 Global Inc. (JCOM) reported
its first-quarter 2013 financial results, with record high
quarterly revenues and EBITDA. Management seems more confident
about 2013 as it has provided a strong financial outlook.
Additionally, the board of directors of j2 Global has increased its
quarterly dividend by 3.2% sequentially from 23.25 cents per share
to 24.00 cents per share, maintaining its streak of dividend
increases for seven consecutive quarters. The new dividend rate
implies an 11.6% increase compared with the dividend paid by j2
Global in the second quarter of 2012.
Quarterly GAAP net income came in
at $22.9 million or 49 cents per share compared with $28.5 million
or 60 cents per share in the year-ago quarter. First-quarter
adjusted earnings per share came in at 58 cents as compared with 64
cents in the prior-year quarter. Quarterly total revenue was
approximately $113.6 million, as compared to $86.7 million in the
prior-year quarter.
j2 Global posted quarterly gross
margin of 82.2% compared with 81.7% in the year-ago quarter.
Operating expenses in the reported quarter were $60.4 million
compared with $33.2 million in the prior-year quarter. Quarterly
operating margin was 29.0% compared with 43.4% in the comparable
quarter last year. Churn rate, in the first quarter of 2013, was
within the annual range of 2.4%.
In the first quarter of 2013, j2
Global generated $40.0million of cash from operations compared with
$38.9 million in the year-ago quarter. Free cash flow, in the
reported quarter was $38.4 million compared with $38.1 million in
the prior-year quarter. At the end of first quarter 2013, j2 Global
had around $310.1 million in cash & marketable securities on
its balance sheet compared with $343.6 million at the end of 2012.
At the end of first-quarter 2013, the company had $245.3 million of
debt as compared to $245.2 million at the end of 2012. The
debt-to-capitalization ratio increased to 0.286 as compared to
0.291 at the end of 2012.
Financial
Outlook
For fiscal 2013, management expects
total revenue of $510 - $535 million, while non-GAAP EPS is
expected to be within the range of $2.78 - $2.98. Non-GAAP
effective tax rate is estimated in the range of 25 - 27%.
Other Stocks to
Consider
Besides j2 Global, other stocks in
the Internet/Application software industry that are currently
performing well include Constant Contact Inc.
(CTCT), Open Text Corp. (OTEX) and
Commtouch Software Ltd. (CTCH).While Constant
currently has a Zacks Rank #1 (Strong Buy), both Commtouch and Open
Text have a Zacks Rank #3 (Hold).
COMMTOUCH SOFTW (CTCH): Get Free Report
CONSTANT CONTAC (CTCT): Free Stock Analysis Report
J2 GLOBAL INC (JCOM): Free Stock Analysis Report
OPEN TEXT CORP (OTEX): Free Stock Analysis Report
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