What BroadSoft Inc (NASDAQ:BSFT) Expects From VoIP Logic Acquisition

BroadSoft Inc (NASDAQ:BSFT) has acquired VoIP Logic, a provider of cloud communications targeting U.S. internet and service companies. Though BSFT didn’t disclose how much money it is parting with to bring VoIP Logic under its wing, the company offered a glimpse into what it expects from the acquisition.

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$0.8 Million Boost To Topline

BroadSoft expects the acquisition of VoIP Logic to add $0.8 million to its topline in 2016. The company reported revenue of $278.84 million in 2015. As for the bottom-line, BroadSoft expects VoIP Logic to be dilutive to its 2016 earnings, specifically modeling a $0.01 per share hit to adjusted EPS.

BroadSoft plans to target customers looking to take greater control of their platform with the solutions that come with VoIP Logic.

3Q16 earnings beat expectations

BroadSoft reported 3Q16 results that showed adjusted EPS came at $0.52 on revenue of $84.1 million. EPS exceeded the consensus of $0.37, while revenue rose 21.7% YoY and beat the consensus estimate of $81.3 million.

4Q16 guidance

For the current quarter, 4Q16, BroadSoft is expecting revenue in the band of $94 to $102 million, while EPS is expected in the range of $0.65 to $0.83. The consensus estimate calls for EPS of $0.80 on revenue of $100.3 million for the quarter.

As for full-year 2016, BroadSoft expects EPS in the range of $2.04 to $2.22, while revenue is expected in the range of $333 to $341 million. The consensus calls for 2016 EPS of $2.08 on revenue of $337.3 million.

The fact that the lower end of BroadSoft’s guidance for 4Q and 2016 are below the consensus estimate has made some investors concerned as they see the company’s forecast as soft.

That sparked a selloff in the stock, leading to a more than 6% decline in the last session. Nevertheless, BroadSoft stock is still up more than 17% YTD.

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