Shares in Geac Computer Corp Ltd responded positively to the rapidly diversifying library automation systems company and one time minicomputer manufacturer’s third quarter figures – the first since it completed the acquisition of Dun & Bradstreet Software Corp. Cause for the celebrations was an unexpected gain in third quarter operating profit despite the substantial third quarter charge. Third quarter operating profit soared 49% to the equivalent of $11m, and the company said it managed to maintain a high cash flow despite acquiring and absorbing the Dun & Bradstreet Corp unit. Some analysts however expressed suspicion, with one telling Reuters the results were questionable given that Geac itself said its purchase of money-losing Dun & Bradstreet for $150m in cash and a $41.25m note was a little pricey. There’s no way that it can turn it around in one quarter, the analyst who declined to be identified, said. I’m very suspicious, very suspicious of what’s behind all this.
