Dealertrack sales jump after $1B acquisition but quarter ends in loss

Employees at Dearlertrack Technologies in New Hyde Park. Employees at Dearlertrack Technologies in New Hyde Park. The Lake Success company, which makes programs for auto dealers, said revenue rose to $158.8 million during the three months that ended March 31. Photo Credit: Newsday / Alejandra Villa

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Dealertrack Technologies Inc., one of Long Island's largest software makers, said Monday that its first-quarter revenue jumped sharply as it began incorporating sales from its recent $1 billion acquisition.

The Lake Success company, which makes programs for auto dealers, said revenue rose to $158.8 million during the three months that ended March 31, up 46 percent from the same period last year.

"We are becoming increasingly optimistic about 2014," Dealertrack chairman and chief executive Mark F. O'Neil said in a statement.

Despite the jump in sales, Dealertrack reported an $11.6 million loss for the quarter as operating expenses rose and it absorbed a $7.5 million charge. The company reported a $34,000 loss for the first quarter last year.

Dealertrack released its earnings report after the close of regular trading on Wall Street. Its stock held relatively flat in after-hours trading, at $44.39.

Dealertrack, Long Island's 11th largest company by stock market value, sells software that auto dealers use to submit credit applications, process motor vehicle registrations and perform a variety of other functions.

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The company's first-quarter sales include several weeks of revenue from Dealer.com, a Burlington, Vermont, website designer that the Long Island company acquired March 3 for $1 billion. The company expects the move to deepen its reach in online advertising and boost sales more than 70 percent.

Dealertrack raised its sales forecast Monday, saying it expected revenue to be between $814 million and $826 million. The company's earlier sales guidance was between $800 million and $816 million.

Dealertrack is forecasting a net loss for the year of between $12 million and $18 million.

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