December 1, 2010 / 11:45 AM / in 7 years

UPDATE 1-Descartes Q3 profit up as services revenue rises

* Q3 EPS $0.03 vs $0.02 last year

* Q3 rev up 37 percent

Dec 1 (Reuters) - Descartes Systems Group Inc DSG.TO DSGX.O, which provides logistics management software and services, posted a 60 percent jump in third-quarter profit, helped by a higher service revenue. Net income for the August-October quarter, was $1.6 million, or 3 cents a share, compared with $1.0 million, 2 cents a share, a year ago.

Revenue rose 37 percent to $25.8 million.

Services revenue --- which contributed 96 percent to the company’s over all revenue -- rose to $24.7 million, from $18.0 million last fiscal quarter.

Descartes’ customers are spread in Europe, Gulf, Asia, Africa and North America and United States contributed 42 percent to the total revenue generated in the quarter.

Analysts on average were expecting the company to earn 11 cents a share, on revenue of $26.5 million, according to Thomson Reuters I/B/E/S.

The Waterloo, Ontario-based company shares, which have gained a little over 10 percent in value year-to-date, closed at C$7 on Wednesday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Prem Udayabhanu) (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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