Pegasystems shares fall after acquisition-related costs sink 1st-qtr earnings below estimates

Pegasystems shares down after weak 1st-qtr results

SEATTLE — Shares of Pegasystems Inc. sank Friday, a day after the business software maker reported first-quarter results below analyst expectations because of higher operating expenses and currency fluctuations.

Pegasystems’ quarterly net income plunged 55 percent to $3.9 million, or 10 cents per share, from $8.6 million, or 23 cents per share, in the same period last year.

Revenue rose 20 percent to $75.1 million from $62.4 million.

Analysts surveyed by Thomson Reuters had forecast higher net income of 23 cents per share and revenue of $74.4 million.

Operating expenses increased 36 percent in the quarter and included a $1.5 million charge related to the company’s acquisition of Chordiant Software Inc.

Exchange rate differences also weighed down earnings by $3 million.

Pegasystems said it expects $348 million in revenue for the year, higher than the $315 million analysts currently predict.

Shares of Pegasystems, which is based in Cambridge, Mass., dropped $5.20, or 13.2 percent, to $34.09 in afternoon trading Friday. The stock has ranged from $16.21 to $39.66 over the past year.