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Transaction Network Services (TNS) 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) 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). 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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