M&A

3 November, 2009

UPDATE 1-Ness Technologies Q3 misses Street, cuts FY outlook

* Q3 adj EPS $0.09 vs est $0.10

* Q3 rev $132.7 mln vs est $145.9 mln

* Cuts full-year outlook

* To streamline certain non-profitable ops

* Shares fall 21 pct

Nov 3 (Reuters) - IT services provider Ness Technologies Inc (NSTC.O) posted third-quarter results that lagged Wall Street expectations and cut its full-year outlook, hurt by weak revenue from Europe, sending its shares down as much as 21 percent.

The Tel Aviv, Israel-based company said it would streamline certain non-profitable operations and take a related restructuring charge of 18 cents to 23 cents a share in the fourth quarter.

The company's system integration and application development segment revenue, which contributes about three-fourths of the total revenue, fell about 21 percent in the quarter.

Net income in the latest third quarter was $0.8 million, or 2 cents a share, down 95 percent from $16.1 million, or 41 cents a share, a year ago. [ID:nWNAB8942]

Ness Technologies, which got an approval in September to dual list its common stock on the Israeli bourse, lowered its 2009 full-year revenue outlook to the range of $540 million to $550 million, citing top-line pressure in the fourth quarter.

The company expects a net loss for the year, but excluding restructuring and other charges, it sees earnings of 36 cents to 40 cents a share.

Analysts expect earnings of 45 cents a share, on revenue of $588.8 million, according to Thomson Reuters I/B/E/S.

Shares of the company were down $1.24, or 19 percent, at $5.16 in late morning trade Tuesday on Nasdaq. They touched a low of $5.06 earlier. (Reporting by Sudipto Ganguly in Bangalore; Editing by Ratul Ray Chaudhuri)

Source: http://www.reuters.com