Shares in education software group Riverdeep slumped 23% today to 85 cents per share after releasing first quarter results today.
The shares fell dramatically despite the results coming in above most analysts expectations, with revenues almost doubling on last year to $56.7m.
Merrion stockbrokers' explantion for the company's poor share price performance is that it s communication with financial markets has been inadequate. In a research note released today Merrion also said that its acquisition-led expansion strategy had increased the exececution risks in the business.
Revenues in the three months to the end of September were also up 9% compared with the previous quarter.
Net income before charges rose to $11.9m, against $3.2m in the same period a year earlier. This figure did not include a restructuring charge of $8.2m linked mainly to costs associated with the integration of its Broderbund acquisition earlier this year.
After the restructuring charge, there was a net loss of $110,000.
Executive chairman Barry O'Callaghan described the results as strong, and said the company would be able to fully leverage the Broderbund acquisition in the second quarter.
