LAKE SUCCESS, N.Y. — With revenue gains on both the transaction and subscription sides of the company's operations, DealerTrack saw its total revenue improve more than 7 percent during the third quarter. Moreover, it enjoyed GAAP net income of $1.2 million after reporting a loss in the year-ago period.

The company's GAAP net income was a lift from the third quarter of 2009, when it incurred a GAAP net loss of $200,000.

Quarterly revenue improved on a year-over-year basis from $58.8 million to $63.1 million.

As far as non-GAAP results, DealerTrack took in $12.9 million in adjusted EBITDA during the period, up from $10.8 million in the year-ago period. It had $6.6 million in adjusted net income, a $600,000 gain from last year's third quarter.

"We are very pleased with our results for the third quarter as revenue for both our transaction and subscription businesses rose," stated Mark O'Neil, chairman and chief executive officer of DealerTrack.

"We are continuing to see the benefits of our investments as we generated an adjusted EBITDA margin in excess of 20 percent for the quarter," he added.

Full-Year 2010 Projections

Looking at expectations for the rest of the year, DealerTrack is projecting full-year revenue to come in somewhere between $240 million and $246 million. This would net of contra-revenue totaling about $1.6 million. This revenue projection is the same as what the company had previously estimated.

Meanwhile, DealerTrack has trimmed its GAAP net income forecast. The company now is anticipating full-year GAAP net income in the range of $1.5 million to $3.8 million. DealerTrack had initially expected to bring in between $2 million and $4 million.

Also, the company trimmed its diluted GAAP net income per share forecast range. It was projected at $0.05 to $0.09 per share, but now it is predicted at $0.04 to $0.09 per share.

"The updated GAAP earnings guidance reflects the impact of certain items that are excluded for non-GAAP financial measures," officials noted.

The company is maintaining its previous non-GAAP results expectations.

DealerTrack anticipates full-year adjusted EBITDA will be in a range of $41 million to $45 million, with $21.5 million to $24 million of adjusted net income.

Finally, it anticipates that there will be full-year diluted adjusted net income ranging from $0.51 per share to $0.57 per share.