IntraLinks Earnings: Margins Shrink Again

IntraLinks Holdings Inc. (NYSE:IL) reported its results for the third quarter. IntraLinks Holdings is a global provider of Software-as-a-Service solutions for securely managing content, exchanging critical business information and collaborating within and among organizations.

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IntraLinks Holdings Inc. Earnings Cheat Sheet

Results: Reported a loss of $1.3 million (2 cents per diluted share) in the quarter. IntraLinks Holdings Inc. had a net income of $800,000 or one cent per share in the year-earlier quarter.

Revenue: Fell 0.1% to $54.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: IntraLinks Holdings Inc. reported adjuted net income of breaking even. By that measure, the company was about in line with the mean estimate. It beat the average revenue estimate of $47.7 million.

Key Stats:

Last quarter marked the fifth straight quarter that the company saw shrinking gross margins, as gross margin fell 1.4 percentage points to 72.2% from the year-earlier quarter. Over that time, margins have contracted on average 2.8 percentage points per quarter on a year-over-year basis.

The company has beaten estiamtes for two quarters in a row. In the second quarter, it topped expectations with net income of 2 cents versus a mean estimate of a loss of 3 cents per share.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 0.8% to $53.8 million in the second quarter from the year earlier.

Looking Forward: The average estimate for the fourth quarter remains unchanged at 0 cents a share.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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