Jive Software shares jump following a pair of acquisitions, third-quarter results
Nov 05, 2012 (Menafn - The Oregonian - McClatchy-Tribune Information Services via COMTEX) --Investors have their doubts about social networking stocks, but Jive Software is giving no indication that it's rethinking its business or strategy.
Jive, formerly based in Portland, said today that it expects to continue losing money as it expands its business. And it's not husbanding its cash, or its shares, as it seeks to maintain its rapid growth rate.
Jive said it will spend about 13 million in cash and stock to buy a pair of collaborative technology companies -- Meetings.io and Producteev -- and integrate their products into Jive's own "social business software."
"We couldn't be more pleased to welcome these talented teams to Jive, who will help us accelerate the innovation and power of our platform for the benefit of our customers," Jive chief executive Tony Zingale said in a written statement.
The markets evidently liked the move, and the company's quarterly outlook. Shares jumped 7 percent in after-hours trading.
Jive moved its headquarters to Palo Alto, Calif., in 2010 but still employs close to 200 at offices in downtown Portland.
The company raised 160 million in a public stock offering last December, selling shares for 12 apiece. (The company still has most of that at its disposal -- it reported 141 million in cash and short-term investments at the end of September.)
Jive's stock subsequently soared above 28.15, but has since fallen below its 12 offering price. Facebook's disastrous IPO weighed on Jive, as did the company's continued losses.
Third-quarter revenues totaled 28.9 million, according to financial results issued this afternoon. That's up 39 percent from the same quarter last year, in line with Jive's forecast.
Jive lost 11.3 million, 18 cents a share. That compares to a loss of 7.6 million in the third quarter last year.
In the current quarter, Jive said it expects revenues between 30 million and 31.5 million, which would maintain an annual growth rate near 40 percent.
Jive's software is designed to encourage collaboration within large organizations, using social networking tools similar to those offered by Facebook and Twitter. It now has 761 customers, 54 more than at the end of the second quarter.
As global organizations increasingly turn to social business to change how they get work done, Jive is increasingly recognized as the de facto standard in the social business market."
Meetings.io, one of the new acquisitions, enables spontaneous group video chats. Producteev makes task-management tools.
Jive shares climbed six cents today to close at 11.20 before the company issued quarterly results. It jumped another 80 cents in after-hours trading.
-- Mike Rogoway; twitter: @rogoway; phone: 503-294-7699
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