after the closing bell,
j2 Global Inc.
) reported its first-quarter 2013 financial results, with record
high quarterly revenues and EBITDA. Management seems more
confident about 2013 as it has provided a strong financial
outlook. Additionally, the board of directors of j2 Global has
increased its quarterly dividend by 3.2% sequentially from 23.25
cents per share to 24.00 cents per share, maintaining its streak
of dividend increases for seven consecutive quarters. The new
dividend rate implies an 11.6% increase compared with the
dividend paid by j2 Global in the second quarter of 2012.
Quarterly GAAP net income came in at $22.9 million or 49 cents
per share compared with $28.5 million or 60 cents per share in
the year-ago quarter. First-quarter adjusted earnings per share
came in at 58 cents as compared with 64 cents in the prior-year
quarter. Quarterly total revenue was approximately $113.6
million, as compared to $86.7 million in the prior-year
j2 Global posted quarterly gross margin of 82.2% compared with
81.7% in the year-ago quarter. Operating expenses in the reported
quarter were $60.4 million compared with $33.2 million in the
prior-year quarter. Quarterly operating margin was 29.0% compared
with 43.4% in the comparable quarter last year. Churn rate, in
the first quarter of 2013, was within the annual range of
In the first quarter of 2013, j2 Global generated $40.0million
of cash from operations compared with $38.9 million in the
year-ago quarter. Free cash flow, in the reported quarter was
$38.4 million compared with $38.1 million in the prior-year
quarter. At the end of first quarter 2013, j2 Global had around
$310.1 million in cash & marketable securities on its balance
sheet compared with $343.6 million at the end of 2012. At the end
of first-quarter 2013, the company had $245.3 million of debt as
compared to $245.2 million at the end of 2012. The
debt-to-capitalization ratio increased to 0.286 as compared to
0.291 at the end of 2012.
For fiscal 2013, management expects total revenue of $510 -
$535 million, while non-GAAP EPS is expected to be within the
range of $2.78 - $2.98. Non-GAAP effective tax rate is estimated
in the range of 25 - 27%.
Other Stocks to Consider
Besides j2 Global, other stocks in the Internet/Application
software industry that are currently performing well include
Constant Contact Inc.
Open Text Corp.
Commtouch Software Ltd.
).While Constant currently has a Zacks Rank #1 (Strong Buy), both
Commtouch and Open Text have a Zacks Rank #3 (Hold).
COMMTOUCH SOFTW (CTCH): Get Free Report
CONSTANT CONTAC (CTCT): Free Stock Analysis
J2 GLOBAL INC (JCOM): Free Stock Analysis
OPEN TEXT CORP (OTEX): Free Stock Analysis
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