DealerTrack 2Q profit jumps 174% over '11

Lake Success-based DealerTrack Holdings Inc., which manufactures software for auto dealers, said Tuesday its net income jumped sharply in the second quarter as sales rose and the company sold some of its assets.

Net income jumped to $5.9 million during April, May and June, up nearly 174 percent from the same period last year. Sales rose 8 percent, to $96.4 million, as auto sales continued to rebound and banks have become more willing to write car loans.

The company also gained $5.5 million from selling assets.

"We are pleased with the results we achieved in the second quarter," DealerTrack chairman and chief executive Mark F. O'Neil said in a statement.

The company's second-quarter operating expenses rose 10 percent, to $90.7 million. But it set aside just $1.4 million for income taxes, compared to $4 million last year.

Shares of DealerTrack, which issued its earnings after the stock market closed, were unchanged in after-hours trading. They had closed down $0.26 to $29.04.

DealerTrack is Long Island's 10th largest company by stock market value. Auto dealers use its software to submit credit applications, process motor vehicle registrations and perform a variety of other functions.

The company's revenue is based partly on the number of times dealers use its system to process transactions. So when car sales rise, so do DealerTrack's earnings.

The company employs about 1,800 people, including more than 300 on Long Island.