Descartes Systems Group (NASDAQ:DXSG) reported a 37% jump in third-quarter net income on Wednesday as the Canadian supply chain software provider squeezed more profits from a more modest 5% increase in revenue compared to a year ago.
The Waterloo, Ontario-based firm beat analysts’ estimates by bringing in $13.3 million, or 15 cents per share, on a record $85.5 million in revenue. Analysts expected net income of 14 cents per share on 85.9 million in revenue, according to Benzinga.
“Supply chains and logistics have never been more visible, relevant or important than in today’s market,” Descartes CEO Edward Ryan said in a statement. “Every day, our customers are faced with new challenges and opportunities as they navigate uncertain and dynamic trading conditions.
Descartes, which reports in U.S. dollars, has been bringing down costs through a global restructuring effort. At the same time, the company is continuing to pursue growth through acquisitions.
In November, the company acquired ShipTrack for $19.1 million up front, with an additional $19.1 million contingent on meeting performance targets. ShipTrack’s cloud-based logistics platform strengthens Descartes’ offerings for e-commerce and medical logistics providers.
Ryan will discuss the results with analysts later in the day.
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