Dealertrack revenue jumps to record after acquisition

Dealertrack Technologies Inc., one of Long Island's largest software makers, reported record third-quarter sales Wednesday as it continues to reap new revenue from the $1 billion digital marketing business it bought this year.

The Lake Success company, which makes programs for auto dealers, said its sales rose to $233.5 million during the three months that ended in September, up 87 percent from the same period last year.

"We performed better than expected this quarter in each revenue category," Dealertrack chairman and chief executive Mark F. O'Neil said in a statement.

The jump in sales, which beat analysts' expectations, prompted Dealertrack to raise its full-year sales estimate, saying it expected annual revenue of between $842 million and $848 million.

Despite the increase in sales, Dealertrack's net income for the quarter fell to $2.1 million, or 4 cents per share. That's down 63 percent from last year as the company continues to absorb expenses from buying and integrating Dealer.com, a Burlington, Vermont, website designer and marketing business that the Long Island company acquired in March.

The company also revised its bottom-line forecast Wednesday, saying it expected to lose $9 million to $11 million during 2014. Previously, Dealertrack estimated a full-year loss of between $7 million and $12 million.

Dealertrack released its earnings report after the close of regular trading on Wall Street. At the close its shares were down 45 cents, or 0.99 percent, to $45.16. Its shares are down about 6 percent since Jan. 2.

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Dealertrack sells software that auto dealers use to submit credit applications, process motor vehicle registrations and perform a variety of other functions.