Starbase Shares Rise Again on News of Key Acquisition

Starbase Corp. shares rose sharply Thursday for the second day in a row on news that the Santa Ana software developer had acquired technology for developing XML-based products that allow different computers, Web sites and various types of computing devices to communicate with each other.

The stock, which climbed 13% on Wednesday, moved up 12.4% Thursday, or 84 cents a share, to close at $7.63, on the Nasdaq SmallCap market.

Starbase acquired privately held Genitor Corp. of Ann Arbor, Mich., for $2.45 million in stock. Genitor provides tools that are expected to accelerate Starbase’s XML-based products. The technology was heavily touted by Bill Gates at a news conference Thursday unveiling Microsoft Corp.’s comprehensive new Internet strategy.

Analyst Peter Jacobson of Kaufman Bros. said Microsoft’s plans are unrelated to Starbase, but recent talk of XML as an emerging standard may have stirred interest in Starbase’s stock.

Kaufman Bros., an investment bank and brokerage specializing in technology issues, rates Starbase a “strong buy.”

Starbase expects to announce a series of partnerships with other software companies in coming months, which Jacobson believes will further fuel interest in the stock.