NEW YORK (TheStreet) -- Shares of Callidus Software (CALD) leapt to their best levels in more than two years Friday after the Pleasanton, Calif.-based maker of salesforce management software posted a surprise profit for the September quarter, and at least one analyst is saying they still look like a bargain.
After Thursday's closing bell, Callidus said it earned $400,000, or a penny per share, in the three months ended Sept. 30 on a non-GAAP [generally accepted accounting principles] basis, which typically excludes one-time items and expenses related to stock-based compensation.
Third-quarter revenue swelled 8% on a sequential basis to $18.5 million as recurring revenue from subscriptions and support increased 18% to $13.2 million, or roughly 72% to total revenue. Gross margins were a bright spot as well, rising to 46% in the latest quarter from 40% in the second quarter, and 37% last year.
Wall Street was looking for a loss of 2 cents a share in the quarter on revenue of $17.5 million.
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