AVG Technologies Shares Up 7% As Q4 Results Top Estimates, Guides 2014 In Line

(RTTNews) - Shares of AVG Technologies N.V. (AVG) surged more than seven percent in extended trading on Wednesday after the Online security company reported results for the fourth quarter that topped analysts' expectations.

The company reported a profit for the quarter that more than doubled from last year, reflecting revenue growth amid improved subscription revenues. The company also provided earnings and revenue guidance for the full-year 2014, in line with Street view.

"In the fourth quarter we grew active users to 177 million, and mobile users to 68 million, supporting our position as a market leader in mobile security. We continued to demonstrate our ability to innovate with the launch of exciting new products such as AVG Wifi Do-Not-Track and AVG PrivacyFix Family, while also extending our reach across multiple platforms with the launch of AVG Antivirus for Mac," CEO Gary Kovacs said in a statement.

The Amsterdam, the Netherlands-based Internet security software developer, reported net income of $12.83 million or $0.23 per ordinary share for the fourth quarter, higher than $4.90 million or $0.09 per ordinary share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $28.19 million or $0.52 per ordinary share, compared to $17.31 million or $0.32 per ordinary share in the year-ago quarter.

On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter increased 7 percent to $101.90 million from $95.21 million, and topped six Wall Street analysts' consensus estimate of $95.22 million.

Subscription revenue for the quarter increased 25 percent to $67.3 million, while platform-derived revenues declined to $34.64 million from $41.56 million in the prior-year quarter.

Average active users increased to 175 million from 145 million last year, while revenue per average active user declined to $0.58 from last year's $0.66. Mobile users totaled 68 million.

Total operating expenses for the quarter declined to $59.32 million from $69.90 million last year on lower sales and marketing as well as general and administrative expenses.

For fiscal 2013, the company reported net income of $63.71 million or $1.16 per ordinary share, higher than $45.06 million or $0.84 per ordinary share in the prior year. Excluding items, adjusted net income for the year was $118.25 million or $2.16 per ordinary share, compared to $76.17 million or $1.40 per ordinary share in the year ago.

Total revenues for the full year increased 14 percent to $407.11 million from $355.97 million in the previous year.

Analysts expected the company to report full-year 2013 earnings of $2.05 per share on annual revenues of $400.35 million.

Looking ahead to fiscal 2014, the company expects adjusted earnings in a range of $1.80 to $2.10 per share on projected revenues between $365 million and $405 million. Street is currently looking for full-year 2014 earning of $1.92 per share on annual revenues of $394.31 million.

"In 2014, we are focused on completing our exit from the third party toolbar business, while investing in important new product initiatives that we believe will drive subscription revenue growth in the second half of the year and increase the predictability and sustainability of our business," Kovacs added.

AVG closed Wednesday's regular trading session at $17.31, down $0.07 or 0.40% on a volume of 1.10 million shares. However, the stock surged $1.29 or 7.45% in after-hours trading.