3rd Quarter Results in Line with Expectations, Company Reports

Blackbaud Inc., one of the region's biggest technology companies, said Monday that its third-quarter earnings declined about 17 percent but were in line with expectations. The Daniel Island provider of financial software and services for nonprofit groups said it earned $7.3 million for the three months ended Sept. 30, about $1.5 million less than during the same period last year. Sales increased almost 18 percent to about $80 million on higher subscription and maintenance fees.

"Our third-quarter financial results were in-line with our expectations, which we believe is a solid performance considering the difficult economic environment that deteriorated considerably over the course of the quarter," said Marc Chardon, Blackbaud's chief executive officer.

For the first nine months of the year, Blackbaud's net income rose 2.5 percent to $23.3 million, while revenues were up nearly 19 percent to $222 million. Chardon struck a cautious note about the short-term future largely because of the fragile state of the economy and the "increased level of caution from customer and prospects."

He noted that one of the challenges of predicting a turnaround within the nonprofit sector is that meaningful financial data goes back only to the 1960s. "I don't think we've lived through anything quite like this," Chardon said, referring to the global economic crisis that has spread in recent months.

As a result, he said, Blackbaud is focused on making prudent investments and watching expenses through at least the end of 2009 in order to position the company for the eventual rebound. "The drivers that will allow us to succeed ... are intact," Chardon said.

Blackbaud also declared a quarterly dividend Monday of 10 cents a share, payable Dec. 15 to stockholders of record Nov. 28. The company released its earnings after U.S. stock markets closed. Its shares closed up 3 cents at $15.23.