Descartes Systems Group Inc (NASDAQ: DSGX) stock fell over 1.7% on November 29^th, 2018 (as of  11:01 am GMT-5; Source: Google finance) after the company posted mixed results for the third quarter of FY 19. DSGX in the third quarter of FY 19 has reported the adjusted earnings per share of 10 cents, missing the analysts’ estimates for the adjusted earnings per share of 12 cents. The company had reported the adjusted revenue growth of 3 percent to $70.01 billion in the third quarter of FY 19. Revenues were comprised of services revenues of $61.1 million (87% of total revenues), professional services and other revenues of $7.3 million (11% of total revenues) and license revenues of $1.6 million (2% of total revenues). Services revenues were up 15% from $53.3 million in Q3FY18 and up 2% from $59.7 million in Q2FY19.

Net income of $7.9 million, up 27% from $6.2 million in Q3FY18 and down from $8.5 million in Q2FY19. Net income in Q2FY19 benefited from a non-recurring tax recovery of approximately $1.0 million. Net income as a percentage of revenues was 11%, compared to 10% in Q3FY18 and 13% in Q2FY19. Adjusted EBITDA of $24.0 million, up 17% from $20.6 million in Q3FY18 and up 5% from $22.8 million in Q2FY19. Adjusted EBITDA as a percentage of revenues was 34%, compared to 33% in Q3FY18 and 34% in Q2FY19. Cash provided by operating activities of $19.2 million, up 2% from $18.9 million in Q3FY18 and up 5% from $18.2 million in Q2FY19. Income from operations of $10.8 million, up 29% from $8.4 million in Q3FY18 and up 7% from $10.1 million in Q2FY19. At October 31, 2018, Descartes had $32.8 million in cash.

Meanwhile, , Descartes acquired PinPoint GPS Solutions Inc. (PinPoint), a provider of fleet tracking and mobile workforce solutions. Canada-based PinPoint helps customers collect real-time location information on trucks and mobile workers using technology, including Geotab (telematics) and SkyBitz (trailer tracking). The purchase price for the acquisition was approximately $11.0 million (CAD $14.4 million), net of cash acquired, which was funded from a combination of drawing on Descartes’ existing credit facility and issuing to the sellers less than 0.1 million Descartes common shares from treasury. Additional contingent consideration of up to $2.3 million (CAD $3.0 million) in cash is payable if certain revenue performance targets are met by PinPoint in the two years following the acquisition. The fair value of the contingent consideration was valued at $0.7 million at the acquisition date.