Software write-off cuts Pacer’s 2nd-quarter net income
Intermodal operator Pacer International saw its net income decline to $4.6 million in the second quarter, from $9.5 million a year earlier, after it wrote off $11.3 million of computer software development costs.
Excluding the large software loss, net income would have increased to $11.3 million in the second quarter, the company reported.
The Concor, Calif.-based company said Tuesday that income from operations for the second quarter decreased $7.8 million from the same quarter of 2004 due to the write-off, although revenue revenues increased 8 percent over the same period to $454.6 million, from $421.6 million.
Diluted earnings per share decreased to 12 cents from 25 cents a year earlier. The company had $32 million of cash flow from operations in the second quarter, an improvement of $15.9 million from the same period in 2004, and paid down $15 million of debt.
Pacer also booked $1.9 million in pre-tax charges related to legal cases in the second quarter.
“We are pleased with the fundamental progress in the company’s ongoing business, notwithstanding the impact of the non-cash write-off of computer software and the costs of the legal settlements,” said Don Orris, chairman and chief executive officer.