DealerTrack reports first-quarter loss
DealerTrack Technologies Inc., the Lake Success provider of software for auto dealers, said it lost money in the year's first quarter from the cost of an acquisition.
The company deemed the period a strong one, however, and, citing growing car sales nationally, said it expected to make a profit for the year. "We are off to a solid start for the year," chairman and chief executive Mark F. O'Neil said in a statement.
Revenue for the quarter was $109.1 million, up 19 percent from last year's first three months.
But DealerTrack reported a net loss of $34,000 for the quarter, or zero cents per share, from the cost of purchasing Casey & Casey NPS Inc., which does business as Auto Title Express, a Louisiana provider of electronic vehicle registration, lien and title services. The deal closed April 1.
The quarterly loss compares with net income of $17 million, or 39 cents a share, a year earlier. Of that profit, $16.1 million was a one-time pretax gain from the sale of an investment in its Chrome Systems Inc. unit to form a joint venture, Chrome Data Solutions LP, with another company.
Dealertrack employs about 1,800 workers, including 300 on Long Island.
The company's revenue is based partly on the number of times dealers use its system to process transactions, so generally when auto sales rise, Dealertrack's revenues increase.