Sapient third-quarter profit plummets by two-thirds on charges, lower sales

Associated Press

Last update: November 5, 2009 - 6:43 PM

BOSTON - Technology-services provider Sapient Corp. said Thursday that third-quarter profits plunged by two-thirds, partly due to special charges, and the CEO said customers were growing more confident in business prospects.

The company said it earned $5.9 million, or 4 cents per share, compared with $18.1 million, or 14 cents per share, in the same quarter last year.

Excluding items, the company said it would have earned 11 cents per share, down from 18 cents per share a year ago.

The company identified $8.6 million in charges for stock-based compensation, restructuring, amortization of assets it bought, and acquisition-related costs.

Revenue fell to $172.5 million from $184.1 million a year earlier.

Analysts expected the company to earn 7 cents per share, excluding items, on sales of $162 million.

CEO Alan J. Herrick said he was pleased with the company's profit "despite the recessionary climate." He said clients were growing more confident about business.

Sapient shares rose 32 cents, or 3.9 percent, to $8.60 in regular trading, then gained another 20 cents, or 2.3 percent, to $8.80 in extended trading after the company reported financial results.

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