Transaction Network Services (TNS:US) Inc., which provides technology for processing credit-card payments, said its first-quarter net loss widened to $3.2 million, partly on severance pay.
The loss grew to 13 cents a share from $470,000, or 2 cents, the year before, the Reston, Virginia-based company said today in a statement. Sales rose 10 percent to $72.7 million, beating the $72.3 million average of estimates (TNS:US) compiled by Bloomberg.
Former Chief Financial Officer Edward O'Brien left in April and was replaced by Dennis Randolph Jr. after TNS reported four straight losses. The company paid out $900,000 in executive severance during the quarter. TNS also said pricing and increases in fees to send data cut into profitability.
Second-quarter earnings will be 11 cents to 15 cents a share, on sales of $74 million to $77 million, TNS said. That compares with profit of 20 cents on sales of $78 million, the averages of estimates compiled in Bloomberg surveys.
Shares of TNS fell 9 cents to $12.40 at 4:01 p.m. in New York Stock Exchange trading (TNS:US). The stock has fallen 42 percent in the past year.
The company also cut its profit forecast for the year to as little as 80 cents a share, compared with a low-end target of 97 cents in February.
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