Descartes revenue up 20%, profit dips
Canadian logistics software company Descartes Systems Group Thursday reported net income of $1.4 million for its fiscal second quarter ended July 31, down from $1.7 million in the year-earlier period.
Revenue was $17.1 million for the period, up 20 percent compared to the same period the prior year.
The company, which reports its financial results in U.S. dollars, recorded $500,000 deferred income tax expenses in both the first and second quarters of fiscal 2009. No comparable deferred income tax expense was taken in fiscal 2008.
Headquartered in Waterloo, Ontario, Descartes said 14 percent of its revenue came from Canada, 59 percent from elsewhere in the Americas, 25 percent from Europe, Middle East and Africa, and 2 percent from the Asia Pacific region.
Arthur Mesher, chief executive officer at Descartes noted, “Customers have recently faced a new world order comprised of higher fuel costs, tighter customer delivery expectations and increased regulatory requirements. In response, we’ve adjusted our implementation methodology to accelerate the speed at which customers achieve results using our solutions.”
After six months, Descartes posted net income of $2.4 million, down from $2.8 million, while revenue was up 21 percent at $33.4 million.
Descartes customers include an estimated 1,600 ground carriers and more than 90 airlines, 30 ocean carriers, 900 freight forwarders and third-party providers of logistics services, and hundreds of manufacturers, retailers, distributors, private fleet owners and regulatory agencies.