SPS Commerce (SPSC) Acquires Cloud-Based Supply Chain Management Co. Ediface; Adjusts Q3, FY12 EPS Lower

August 7, 2012 7:35 AM EDT Send to a Friend
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SPS Commerce (Nasdaq: SPSC), a leading provider of on-demand supply chain management solutions, announced today it has acquired Edifice, a leading provider of cloud-based supply chain performance solutions with more than 500 customers worldwide, including many Fortune 1000 suppliers. The acquisition reinforces SPS' position as the industry's largest and fastest growing provider of cloud-based supply chain solutions, expanding the company's point-of-sale (POS) analytic offerings that enhance collaboration among retailers and suppliers to improve efficiency, reduce inventory costs and boost sales.

Outlook Updated

For the third quarter 2012, the Company is increasing its revenue guidance and currently expects revenue to be in the range of $19.6 million to $19.9 million, representing growth of 26% to 28% compared to the third quarter 2011. The Company is lowering its expectations for adjusted EBITDA to be in the range of $1.6 million to $1.9 million, reflecting an impact of $500,000 to $600,000 for the third quarter from the acquisition. The Company expects non-GAAP earnings per diluted share to be in the range of $0.08 to $0.09. The Company expects GAAP loss per diluted share to be in the range of $(0.01) to $(0.02). Non-cash, share-based compensation expense is expected to be approximately $800,000 and amortization is expected to be approximately $560,000 for the third quarter.

The Street is looking for Q3 sales of $18.38 million and EPS of $0.11.

For the full year 2012, the Company is increasing revenue guidance and currently expects revenue to be in the range of $75.0 million to $76.0 million, representing growth of 29% to 31% compared to the full year 2011. The Company is lowering adjusted EBITDA and now expects adjusted EBITDA to be in the range of $7.7 million to $8.4 million, reflecting an impact of $700,000 to $900,000 for the full year. The Company expects non-GAAP earnings per diluted share to be in the range of $0.37 to $0.39. The Company expects GAAP earnings per diluted share to be in the range of $0.01 to $0.04. Non-cash, share-based compensation expense is expected to be approximately $3 million and amortization is expected to be approximately $1.8 million for the full year.

The Street sees FY12 EPS of $0.42 and sales of $71.5 million.


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Comments

Merger
Leon David Peris on 2012-08-07 11:48:31
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Would be the way to move along.


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