August 23, 2010 / 9:14 PM / 7 years ago

UPDATE 1-Absolute Software posts Q4 loss on higher costs

2 Min Read

* Q4 loss/shr C$0.08 vs EPS C$0.36

* Q4 rev up 16 pct

Aug 23 (Reuters) - Canada's Absolute Software Corp (ABT.TO) posted a quarterly loss, hurt partly by higher sales and marketing expenses, and said it was cautiously optimistic about 2011. The company, which provides security software, said sales and marketing expenses rose 45 percent to C$10.9 million for the fourth quarter ended June 30.

Net loss for the quarter was C$3.8 million, or 8 Canadian cents a share, compared with a net income of C$16.5 million, or 36 Canadian cents a share, last year.

However, revenue rose 16 percent to C$16.6 million.

The majority of the revenue from fourth-quarter sales contracts is included in deferred revenue on the balance sheet at June 30, which was C$102.8 million, compared with C$95.9 million a year ago.

Absolute's revenue model differs from others since customers pay for up to three years in advance, and while the company gets the cash up front, it recognizes revenue over a deferred period of time.

The previous quarter's results included a C$4.5 million gain, the company said.

The company also forecast growth in its sales contract segment and cash from operating activities for 2011.

Absolute Software is a key member of Intel's (INTC.O) anti-theft offering that lowers incidents of notebook theft.

Shares of the company, which have gained 10.5 percent in the last 3 months, closed at C$4.78 Monday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Unnikrishnan Nair) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))

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