Tangoe Q3 Results Beat Street Estimates (TNGO)

Tangoe (NASDAQ: TNGO) announced third-quarter results on Tuesday, November 6, that beat Wall Street expectations. Tangoe posted an adjusted EPS of $0.13 instead of the $0.09 that analysts had predicted. Moreover, Tangoe also provided better full-year EPS guidelines of  $0.48 to $0.49 as opposed to the analyst expectation of $0.46. Tangoe also posted adjusted EBIDTA of $6 million, up 82% over the previous year.

Tangoe’s total revenue was $40.1 million, a 547% rise over that of the previous year. Tangoe posted a GAAP net income of $0.6 million compared to the $1.9 million loss in the same period the previous year. This shift to the black has been significantly aided by a 48% rise in recurring technology and services revenue to $36.1 million. Non-GAAP net income showed an even better number with a 100% increase from $2.7 million in the same quarter the previous year to $5.4 million.

Future Plans

Tangoe’s full-year guidance reveals that the company expects revenue of $152.6 million for 2012 and revenue of $188 million to $191 million in 2013. Tangoe’s executives have also revealed plans to increase revenues by gaining new customers, using strategic alliances and increasing sales to existing customers. Tangoe officials also explained that the guidance was based on current plans and excluded sudden changes in the economy.

Tangoe’s cash flow declined by $22.7 million to $55.7 million, mainly because of its investment in Symphony.

About Tangoe

Tangoe is a communications lifecycle management (CLM) services and software provider for a plethora of companies all over the world. The CLM covers the entire lifecycle of a company’s communications equipment including planning, sourcing, procuring, provisioning, inventory management and decommissioning. Tangoe offers communication management software that can optimize the expenses involved in a complex communications installation for a company.

Company Statements

Tangoe has also released forward-looking statements along with its third-quarter results. Tangoe plans to expand market share by increasing business with existing customers, obtaining new accounts and strategic alliances. Tangoe has already expanded sales resources to achieve the current results. Tangoe has a high renewal rate that is part of the reason for the better outlook provided by the company. Tangoe has also increased management spend in the period under consideration to acquire Symphony TEM, increase deployment and acquire new customers.

Market Movement

Tangoe shares moved up on Wednesday after the Q3 results were announced, but had an overall loss of 4.3% on Thursday to close at $13.88. Investors traded 900,000 shares of Tangoe stock on Thursday, which slightly trails the daily average.

Some other companies that also saw decreases in share price on Thursday were Rubicon Technology (NASDAQ: RBCN), which declined by 9.5% to $6.61, Sypris Solutions (NASDAQ: SYPR), down 3.8% to $3.59, and STEC (NASDAQ: STEC), which ended trading on Thursday down 0.8% to $4.51.

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Published by Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing. http://www.facebook.com/ben.rouss