November 2, 2011

Blackbaud Income Up 15% Compared with Q3 2010

Staff Report  /  Charleston Regional Business Journal

Blackbaud Inc. recorded a net income of $9.8 million during the third quarter, the company announced Tuesday.

The earnings represented a 15% increase compared with the same period last year, when the company earned $8.5 million.

The Daniel Island-based software company's total revenue was $95.5 million, also an increase of 15% year-over-year. Diluted earnings per share were 22 cents.

"Solid execution during the third quarter enabled Blackbaud to deliver organic revenue growth of 12% and total revenue growth of 15%," Marc Chardon, Blackbaud's CEO, said in a news release. "We believe the company remains well-positioned to deliver low-double-digit organic revenue growth and mid-teens total revenue growth for the full year 2011. This would represent a meaningful acceleration in growth from the 5% level in 2010, in spite of the continued challenging economic environment."

The third-quarter results include an adjustment to lengthen the amortization period of initial setup fees associated with certain subscription-based offerings. The company made the adjustment because it found the average time that customers use the subscriptions is longer than estimated. That adjustment reduced third-quarter revenue by about $700,000.

The company's board of directors approved a fourth-quarter dividend of 12 cents per share. And $50 million remained available under the Blackbaud's share repurchase program, which became effective Aug. 1.