Ellie Mae 3Q income down on acquisition costs
Mortgage software provider Ellie Mae ($22.39 0.15%) reported income for the third quarter of $1 million, or 5 cents a share, down from $1.8 million, or 10 cents a share, in the year-ago quarter.
The company took a $400,000 charge related to the acquisition of Del Mar Datatrac. It also reported a tax benefit of $266,000 for the three months ended Sept. 30.
The Del Mar Datatrac acquisition is expected to accelerate the company's growth by significantly expanding its lender customer base.
Total revenue rose 23% to $14.7 million, compared to $11.9 million in the third quarter of 2010. Software revenue increased 30% to $11.8 million, compared to $9.1 million in the year-ago quarter. Network revenue was $2.8 million, essentially flat with a year earlier.
Net income for the nine months ended Sept. 30 was $200,000, or a penny a share, compared to a loss of $1.1 million, or 33 cents a share in the year-ago period.
Ellie Mae said the number of lender-users actively using the company's Encompass enterprise solution increased 10% year over year to 43,183. Lender Encompass revenue for the third quarter of 2011 increased 27% to $12.1 million as compared to the third quarter of 2010; and average revenue per active lender-user in the third quarter of 2011 increased 12%.
"We continued to deliver strong financial performance in the third quarter, with record quarterly revenue and solid growth in our user base," said Sig Anderman, president and CEO of Ellie Mae. "Our results are particularly notable in light of the continued decline in mortgage origination volume and the overall macroeconomic challenges."
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