Softchoice Corp., a Toronto-based provider of information technology, software and services to companies in North America, reported its first quarter net profits fell by more than half, mainly from acquisition-related expenses and added costs.

The company said Wednesday it earned US$1.7 million or 10 cents a share for the three months ended March 31, compared with earnings of US$3.7 million or 21 cents for the same 2007 period.

The company, which reports in U.S. dollars, said the 53 per cent drop in earnings was partially due to acquisition costs incurred in integrating recent acquisitions and increased hiring in the fourth quarter.

Three month revenue increased 77 per cent to US$299 million, due to the impact of the three acquisitions completed in the last six months.

"The work of integrating our recent acquisitions has proceeded smoothly and on schedule," said David MacDonald, Softchoice's president and CEO. "We are very pleased with the growth in our hardware solutions business, especially at this time of economic uncertainty.

"These results support our belief that in combining consulting, solution design and project management services with our expertise in managing large volume purchasing transactions, we have increased our strategic relevance to our customers and enhanced our ability to earn a larger share of their IT spending."

Softchoice sells consulting and IT asset management services and employs 993 people at operations across the United States and Canada.

In Wednesday trading on the Toronto Stock Exchange, Softchoice shares rose 26 cents to $14.99.

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