CyberSource Corp. said revenue more than doubled, but earnings fell, in the third quarter as it neared the anniversary of its November purchase of Authorize.Net Holdings Inc.
The Mountain View, Calif., online payment processor said late Thursday that its net income fell 40% from a year earlier, to $207,000, while revenue rose 117%, to $57.7 million.
Using its preferred method of measuring its performance, one that does not follow generally accepted accounting principles, CyberSource said its earnings grew 78%, to 16 cents a share, or a penny ahead of the average estimate of analysts.
The company also raised its full-year targets. It now expects to report net income of $1.1 million to $1.4 million, versus a previous range of $800,000 to $1.3 million. It said it expects to report revenue of $225.5 million to $226 million, versus a previous range of $220 million to $225 million. And it said it expects to post non-GAAP earnings of 63 to 64 cents a share, versus a previous range of 62 to 64 cents.
Thomas McCrohan, an analyst at Janney Montgomery Scott LLC, wrote in a note to clients that CyberSource is being cautious. "Management remains guarded on the seasonally strong fourth quarter due to the obvious macro concerns and slowing transactional growth trends towards the end of September."