Concur's 2Q profit jumps on higher subscription sales

REDMOND, Wash.—Shares of Concur Technologies Inc., which makes corporate expense-management software, soared Thursday after the company said its fiscal second-quarter profit rose on higher sales.

One Wedbush Morgan Securities analyst saw the company's success as a reflection of the weak economy, as more companies seek to control expenses.

Concur's net income nearly tripled to $3.7 million, or 8 cents per share, compared with $1.3 million, or 3 cents per share, in 2007.

Excluding one-time costs and benefits, the company made 21 cents per share compared with 12 cents per share in 2007.

Sales rose 74 percent to $53.6 million from $30.8 million in the 2007 second quarter.

Analysts polled by Thomson Financial expected profit of 11 cents per share on sales of $50.1 million. Analysts typically exclude one-time items.

Concur said subscription revenue jumped to $50.8 million from $27.9 million in 2007. Consulting and other revenue fell slightly to $2.8 million from $2.9 million.

Wedbush Morgan Securities analyst Michael Nemeroff said that Concur had a good second quarter and said businesses may continue to buy its products to reduce costs in a weak economy.

However, he said he did not know if expense-management products would be immune from weak information-technology spending.

He raised his 2008 earnings-per-share estimate to 50 cents from 47 cents and his 2008 revenue estimate to $213.4 million from $205 million.

Shares in the Redmond, Wash.-based company rose $3.51, or 10.4 percent, to $36.59 in afternoon trading. They have traded in the past year between $17.22 and $39.73.