Broadsoft Shrinks Profits As Sales Rise 7%

This quarter was a good one for Broadsoft's (NASDAQ: BSFT  ) revenue, according to its just-released earnings report. The Internet-protocol telecommunications company's Q3 sales increased 7% compared with where they were this time last year, to $42.9 million. The increase was helped by a boost in the company's subscription and maintenance support segment.

Sales were solid, but Broadsoft's quarterly margins were lacking. The company spent $9.3 million more on its operating expenses this quarter than the same one a year prior, which caused profits to sink into the negative. Overall operating income was negative-$2.9 million, while net income came in at negative-$4.0 million.

Despite having some "short-term concerns" over the state of the industry's spending environment, Broadsoft CFO Jim Tholen was pleased by both the company's cash flow -- net cash from operating activities was up 24% compared with last year -- and its acquisition of British voice services company Hipcom, which he said was "central to our plans for the expansion of Cloud PBX services into Europe."


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