Published Aug. 8, 2012
The costs associated with combining Blackbaud and Convio put a dent in the earnings of the Daniel Island software development and services company for the second quarter.
Blackbaud’s CFO said the combined company expects to see the merger pay off in 2013 and beyond, and the company’s CEO said the second-quarter numbers were in line with what was expected. Blackbaud specializes in developing and supporting software for the nonprofit sector.
“Over the last few months, we have made significant progress integrating Convio’s employees and operations into Blackbaud,” said CEO Marc Chardon in a statement. “Market reception to our combination has been favorable, and we are excited to be in a unique position of delivering the industry’s leading CRM and online fundraising solutions from a single vendor.”
Without considering the integration and acquisition of Convio, the company’s income from operations was $17.1 million for the second quarter of 2012, compared to $19.9 million in the same period last year. Blackbaud said that amount was generally consistent with what the company expected in the range of $15.5 million to $17 million.
Blackbaud said part of the Convio acquisition included write-downs of deferred revenue, stock-based compensation expenses, amortization of intangibles, acquisition and integration related expenses, impairment of cost method investment, write-off of prepaid proprietary software licenses and gains on the sale of assets.
“The second half of 2012 represents a transition period as we continue to take action on numerous plans to capitalize on the synergies between Blackbaud and Convio,” said Blackbaud CFO Tony Boor. “The majority of the benefits we expect to realize as a result of our efforts, from both a growth and cost synergies perspective, are expected to occur during 2013 and beyond as a result of the longer than expected regulatory review process for the acquisition.”