November 9, 2010 / 10:03 PM / 7 years ago

UPDATE 1-Softchoice Q3 profit halves on higher expenses

* Q3 EPS $0.11 vs $0.28 last year

* Q3 rev up 17 percent

Nov 9 (Reuters) - Canadian technology services provider Softchoice Corp’s SO.TO quarterly profit more than halved, hurt by higher expenses and lower foreign exchange gains.

Total expenses rose 17 percent to 33.6 million, while foreign exchange gain was $1.6 million compared with $6.2 million for the same period last year.

For the third-quarter, the company reported net income of $2.1 million, or 11 cents a share, compared with $4.9 million, or 28 cents a share, last year.

The company’s vendor partners include Microsoft (MSFT.O), HP (HPQ.N), IBM (IBM.N) Cisco (CSCO.O) and VMware VMW.N. Microsoft is its largest software partner.

Revenue rose 17 percent to $255.2 million, driven by 22 percent rise in hardware sales, while Microsoft licensing and other software grew by 17 percent and 10 percent, respectively.

Adjusted earnings for the quarter was 4 cents a share.

Analysts on average were expecting the company to earn 2 cents a share, on revenue of $239 million, according to Thomson Reuters I/B/E/S.

Toronto-based company shares, which have gained 18 percent in value year-to-date, closed at C$8.34 Tuesday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore) (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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