ENGLEWOOD, Colo. (AP) -- Software maker CSG Systems International Inc. lowered its 2013 adjusted earnings and revenue forecasts in order to account for a Comcast Cable contract extension.
Shares dropped more than 5 percent after the opening bell, then recovered about half of the initial loss.
The Englewood, Colo., company said Wednesday that it now expects adjusted earnings between $2.05 and $2.15 per share, on revenue in a range of $740 million to $760 million. It previously predicted adjusted earnings of $2.23 to $2.33 per share, on revenue between $755 million and $775 million.
Analysts surveyed by FactSet, on average, were expecting full-year earnings of $2.12 per share, on revenue of $752.1 million.
CSG said that about 20 percent of its total revenue in 2012 came from Comcast.
In a filing with the Securities and Exchange Commission, CSG said that its prior agreement with Comcast Cable was set to expire at the end of the month, after being extended from its original Dec. 31 expiration date. The company said that the contract was extended while it continued talks with Comcast Cable on a new, longer-term agreement.
The new subscriber management agreement was signed on Tuesday.
CSG said that the new contract with Comcast runs through Feb. 28, 2017, with an extension option. CSG said that its 2013 revenue from Comcast may fall about 10 percent compared with 2012, partly due to pricing adjustments. Total revenue for 2012 was $756.9 million.
CSG's stock fell 46 cents, or 2.3 percent, to $19.80 in midmorning trading, after earlier dropping as low as $19.11. The shares have traded in a 52-week range of $13.85 to $23.33.