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Open Table to acquire Mobile Technology Company (OPEN)

Open Table Inc. (NASDAQ: OPEN) announced on Thursday that it has agreed to acquire a mobile technology company, JustChalo Inc. in both cash and stock deal valued at $11 million.

The San Francisco-based Company, which provides online restaurant reservation services, said that the number of people choosing to reserve a table via mobile devices climbed 36% in North America during the recently concluded quarter.

While the acquisition of JustChalo will help Open Table to further cement its position in online restaurant table booking business, the latest technology will also help enhancing customers’ mobile experience.

Open Table said that the acquisition related costs will trim fiscal 2013 non-GAAP earnings by 2 cents a share.

JustChalo, is a technology Company which focuses on the U.S. restaurant industry, says its website. The Company has offices in Mumbai, India and Saratoga, California.

Earlier in May, Open Table reported better-than-expected fiscal first quarter results. The Company posted a profit of $7.1 million or 30 cents a share up from $4.8 million or 21 cents a share, in the same quarter of last year. On adjusted basis, the Company earned $10.7 million or 45 cents a share up from $9.2 million or 40 cents, in the same period of last year. Revenue stood at $45.50 million. Analysts’ consensus estimate was for earnings of 43 cents a share on revenue of $45.48 million.

At that moment, the restaurant reservation service provider said that it was expecting non-adjusted earnings to come in the range of $1.33 a share to $1.47 a share and non-GAAP earnings between $1.88 to $2.02 a share on revenue of $185.3 million or $190.9 million.  Analysts’ consensus forecast was for $1.91 a share on revenue of $189.55 million.

For the current quarter, the Company is expecting non-GAAP earnings of 43 cents to 49 cents a share on revenue of $44.9 million to $46.2 million. Analysts’ consensus estimate is for 47 cents on revenue of $46.70 million.

 


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