Integral Systems projects slight rise in 4Q profit

The company also said it expects to apply for an extension to file its full-year results as it transitions to newly appointed independent auditors. Integral Systems was required to file its annual report to the Securities and Exchange Commission by Dec. 15.

Based on preliminary results, Integral Systems estimates it earned about $5 million, or 27 cents per share, during the quarter ended Sept. 30, compared with earnings of $4.8 million, or 23 cents per share, during the same quarter last year.

Operating earnings, which exclude audit related fees and noncash compensation expenses, totaled about $7 million during the company's fiscal fourth quarter.

Analysts polled by Thomson Reuters, on average, forecast earnings of 20 cents per share for the quarter. Analysts do not always include special charges in their estimates.

Quarterly revenue jumped 27 percent to $46 million.

Including the preliminary fourth-quarter results, Integral Systems estimates it earned $18 million, or $1 per share, during its fiscal 2008, compared with $12.8 million, or 58 cents per share, in fiscal 2007.

Operating income jumped to $25 million from $16.9 million during fiscal 2007.

Despite the better than expected fiscal fourth-quarter results, Integral Systems provided a fiscal 2009 outlook below what analysts are expecting. Integral Systems said it expects earnings of $1.01 per share for the year. Analysts, on average, expect earnings to be $1.20 per share for the full year.

Integral Systems 2009 estimate is based on expectations for a decline in gross margin by 34 percent because of fewer license sales. Operating margins are also likely to narrow, the company said, because of infrastructure investments, research and development, corporate services and rising noncash stock compensation expenses.

The company's tax burden is also like to be higher during the year after recording special nonrecurring tax credits in 2008.

Shares of Integral Systems fell $6.12, or 27.4 percent, to $16.18 in midday trading. Shares have traded between $10.91 and $27 during the past year.