For the year, the shares of Double-Take Software
Double-Take develops technologies to help companies recover from computer meltdowns; it has major distribution agreements with companies like Hewlett-Packard
Q2 revenues increased 36.2% to $20 million and license revenues were up 24% to $12 million. The license revenues are critical, since they generally lead to higher maintenance and service revenues. As for net income, it was $7.5 million or $0.33 per share, which compares to net income of $100,000 or $0.02 per share in the same period a year ago.
Double-Take's software focuses mostly on Microsoft
Management upped its full-year guidance from $78.5 million-$80.5 million to $81.1 million-$82.1 million. That means the company is trading at about 4.4 times revenues, which is in line with the valuations in the security sector.
For a company like Double-Take, results can be volatile. But looking at the next couple of years, the demand for its products looks fairly solid and there should be further innovation along the way. So while the stock slipped on Q2, the long term still looks rosy.
Take a second look at further Foolishness:
- 5-Star Tech Stocks: Double-Take Software
- Double-Take's Single Focus
- Turning Disaster Into a Nice Business
Fool contributor Tom Taulli, author of The Complete M&A Handbook, does not own shares mentioned in this article. CDW and Dell have been recommended by our Stock Advisor service, while Microsoft and Dell are picks from our Inside Value newsletter. The Fool's disclosure policy always saves its work in case of a meltdown.