Blackbaud sees jump in quarterly earnings

Earnings at Blackbaud Inc. jumped nearly 60 percent in the second quarter while revenues rose at their fastest pace in five years, the Charleston-based software maker said Wednesday.

The company, which completed its initial public offering a year ago this month, said its profit totaled $8.5 million for the quarter ended June 30, up 59.7 percent compared to the same period last year.

Sales increased 20 percent to $42.8 million, bolstered by broad-based demand for the company’s products and services.

The second quarter is typically a busy period for Blackbaud because it coincides with the end of the fiscal year for many nonprofit groups, the main buyers and users of its software.

“Revenues from all major sources … were strong,” said Bob Sywolski, chief executive officer.

On a per-share basis, earnings rose by 50 percent for the quarter to 18 cents.

For the first six months of the year, Blackbaud said its profits soared 108 percent to $19.4 million compared to the first half of 2004. Sales increased 20 percent over the same period to $80.2 million.

Optimistic about its short-term prospects, Blackbaud changed its profit outlook for the rest of the year, saying its earnings should close out 2005 between 58 and 60 cents a share, up from its previous estimate of 56 to 58 cents. The company attributed a cent of that increase to a $46.6 million stock buyback it recently completed.

Blackbaud also declared a quarterly dividend Wednesday of 5 cents a share payable Aug. 30 to stockholders of record on Aug. 15. In addition, the company authorized the repurchase of up to $35 million of its common stock.

Blackbaud announced its results after the stock market closed. Shares of the company closed at $13.82 Wednesday, down 7 cents.