Rainmaker Systems, Inc. (RMKR), a provider of sales and marketing solutions with proprietary software, announced better than expected non-GAAP earnings of $1 million, or 5 cents per share versus consensus of a 6-cent loss. GAAP net loss, including stock compensation expense and amortization of intangible assets, was $277,000, or a loss of 1 cent per share. The company achieved record first quarter revenue of $20.6 million, an increase of 27% year over year. Analysts surveyed expected $17.2 million in revenues.
Rainmaker CEO Michael Silton said, “We are pleased with the response from our teams and our clients after the client transition that we encountered early in the quarter. Our enthusiasm for the future is reinforced by the significant number of new clients we engaged in the first quarter, as well as the continued and increasing opportunities for international expansion that we are seeing from our current customers. We now have two clients that have expanded our contract sales solutions into Asia, and we continue to make progress in rolling out our contract sales reseller portals and building out our solutions to address our clients’ international needs.”
Rainmaker reaffirmed revenue guidance for 2008 of $68 – $72 million. Shares of RMKR closed at $3.58 and have a 52-week range of $2.39-$10.00. Shares were bid 3% higher in early extended trading.
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