Ness Technologies Ltd. (Nasdaq: NSTC) has acquired Thai software distributor Advanced Industrial Management Co. for $3.75 million. Payment will be in two stages: $2.4 million in cash, and $1.35 million subject to the company meeting business targets during 2007-08.
This is Ness Technologies’ second acquisition in recent months, made through its NessPRO division. In December 2006, the company acquired Spain’s Selesta for €10 million. The acquisition of Advanced Industrial Management strengthens Ness Technologies’ position in Thailand, in addition to its activity in Israel, Spain, Portugal and Singapore. Ness Technologies said that Advanced Industrial Management made a profit in 2006 and has 35 employees.
Ness Technologies also published its financial report for the first quarter of 2007 and guidance for the second quarter and the year as a whole. The company posted $125.8 million revenue for the first quarter, up 18% on the $107 million posted for the corresponding quarter. Net profit fell 10% to $5.7 million ($0.15 per share) from $6.3 million ($0.18 per share). Orders backlog rose 20% to a record $631 million at the end of the first quarter, from $527 million at the end of the first quarter of last year.
The company predicts $0.17-0.19 earnings per share on $125-130 million revenue for the second quarter. For the year as a whole the company predicts 18-20% growth to $560-570 million revenue, but warned that the weakness of the dollar will reduce earnings per share by $0.06 to $1-1.06.
Published by Globes [online], Israel business news - www.globes.co.il - on May 13, 2007
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