Shares of Enghouse Systems (ENGH) fell more than 10% after the Canadian software company
issued disappointing earnings.
In the last week, the Toronto-based company’s stock has fallen 27% to trade at $24.85 a share.
Enghouse Systems blamed its poor earnings on higher competition in cloud services, which hurt
its fiscal second-quarter revenue.
Enghouse reported revenue for the three months ended April 30 of $106.3 million, down from
$117.3 million in the same period last year. The company’s profit came in at $33.8 million
compared to $40.2 million last year. Both metrics missed analysts’ consensus estimates.
The software-and-services provider said its contact centre management software business was
impacted by higher cloud competition. The company also said that its bottom line was hit by
unfavourable foreign exchange transfers as European currencies remain under pressure.
Last fall, Enghouse Systems said it is exploring all options, including a sale, as its business
continues to falter. The company’s stock has fallen 51% in the past six months.
