Verity's Earnings Rise 18%

Reuters

Web portal software maker Verity Inc. said its pro forma third-quarter earnings rose 18% to $9.2 million, or 25 cents a share, beating analysts' expectations of 23 cents, as revenue grew 30% to $38 million. The results, released after the market's close, sent Verity's stock up nearly 8% to $24.88 in after-hours trading. The shares had closed at $22.94, up 63 cents, on Nasdaq. The Sunnyvale, Calif.-based company also said it expects profit for the current quarter between 24 cents and 27 cents a share. Wall Street analysts have been expecting 25 cents. "It is a tough economy, and we're not trying to make light of it," said Verity President Anthony Bettencourt. "Decisions [by customers] were taking a little bit longer and the panic spending of e-business subsided, but we didn't see any trends that alarmed us." The company said it would consider a stock buyback, merger or acquisition.

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