KANSAS CITY – DST Systems, Inc. reported net income of $3.17 per share for the second quarter 2012, a 200 percent leap over last year’s second quarter earnings of $1.17 per share. The Kansas City-based information technology company also reported $632.8 million in revenue, an 8.7 percent uptick over last year.
DST posted a $158.2 million gain in the quarter from selling off investments, most of the money coming from the sale of its shares in a single private company. DST used most of the cash from these sales to pay off debt.
During the second quarter, DST also axed a processing system it was developing for the insurance market after deciding the costs were too high and market demand too low. Doing so cost the company $5.8 million from software it bought to develop the platform and $1.9 million related to laying off employees, plus another $1.4 in unspecified operating costs.
A report from S&P notes that a range of factors could limit DST’s ability to grow in the near term, including market volatility, competition, recent acquisitions and a decrease in demand for some of its services.
At midday, DST stock was trading at $52.05 per share, down 3.43 percent from Tuesday’s closing price and down nearly 5 percent from last week’s high of $54.51 on Friday.