Shares of Carbonite Inc. (CARB), a provider of data protection solutions including cloud and disaster recovery as a service, are 17% higher as of 11:55 a.m. EST after the company announced fourth-quarter results and an acquisition.
Starting with Carbonite's fourth-quarter results, the company posted a 15% revenue gain to $61.7 million, which slightly missed analysts surveyed by Zacks calling for $63.7 million. On the bottom line, Carbonite reported a net loss of $1.6 million. When adjusted for special items, earnings came to $0.30 per share, which was slightly ahead of estimates calling for $0.29 per share.
According to president and CEO Mohamad Ali in a press release:
2017 was another successful year for Carbonite. We built and integrated the major elements of our leading data protection platform for businesses. We launched new programs and tools to better enable our partners, and again we were recognized for excellence in customer support. I am confident in our path forward and our ability to continue to execute the long-term strategic transformation we started just a few years ago.
Also of major interest to investors was Carbonite entering a definitive agreement to acquire Mozy, Inc. from a subsidiary of Dell Technologies. The agreed purchase price for Mozy is $145.8 million in cash and the deal will expand Carbonite's customer base and give Mozy's customers a way to scale up with more data protection services. If the companies can generate cost synergies and cross-sell products and services, it should be a good move and definitely one of the reasons shares of Carbonite are higher Wednesday.