DealerTrack reports rise in net income

DealerTrack Holdings Inc., which makes software for auto retailers, said Tuesday it went from red ink to black last year on an improving new car market and one-time tax and asset sale gains.

Revenue for the year ended Dec. 31 was $353.3 million, up 45 percent from 2010. Net income was $65.1 million, or $1.53 a share, compared with a loss of $27.8 million or 69 cents a share for 2010. The loss in 2010 was attributed to a $28.4 million tax expense.

The company credited some of the improvement in 2011 to a $2.8 million tax benefit and the $26.8 million gain from the sale of ALG, also known as the Automotive Lease Guide, which provides automotive residual values and other data.

Issuing guidance for 2012, the company said it expects revenue for the year to be between $365 million and $372 million.

The 2011 results and 2012 guidance were announced after the close of floor trading on the Nasdaq stock market. The company's shares were down 7.98 percent to 28.70 in Tuesday's after-hours trading.

Chairman and chief executive Mark F. O'Neil said the company was helped by "healthy auto credit and car sales trends throughout the year."

DealerTrack operates what it says is the nation's largest online credit application network, and also provides software for inventory management and merchandising by dealers as well as electronic motor vehicle registrations and titling.

It employs about 1,800 people, including more than 300 in Lake Success.