Wind River Systems Inc, the Alameda, California-based provider of real-time operating systems, has reported third-quarter net income down 17.3% year-over-year at $5.9m on revenue up 30.4% at $44.6m. Earnings per share dipped to $0.13 from $0.16 in the year-ago quarter. Excluding one-time charges for both periods, earnings per share for the latest quarter were flat at $0.17, matching the consensus estimate of analysts surveyed by First Call.
Revenue for the quarter came in $2.6m higher than analysts at Credit Suisse First Boston were expecting, leading the bank to note that sequential momentum appears to be improving and the company’s vertical market strategy is gaining traction. On the downside, however, an increased proportion of lower-margin services brought gross margins in below expectations at 81.7%, down from 84.5% in the year-ago quarter. Operating expenses of $26.1m also exceeded CSFB’s estimates.
For the nine-month period, net income fell 16.5% to $14.4m on revenue up 26.9% at $117.7m, while EPS fell to $0.33 from $0.40. Excluding charges, pro forma EPS rose to $0.42. Analysts are expecting earnings of $0.21 per share next quarter.