Verity ( VRTY) posted a second-quarter profit Thursday and offered solid financial guidance for the second half of its fiscal year.

The software company also set a search partnership with Yahoo! ( YHOO) and said it would acquire closely held Dralasoft of Westminster, Colo., for $8 million in cash. Shares rose 3% in after-hours trading.

For its second quarter ended Nov. 30, Verity earned $4.4 million, or 11 cents a share, up from the year-ago $3.6 million, or 9 cents a share. Revenue rose 30% from a year ago and 9% sequentially to $37.6 million.

The company guided investors to expect pro forma earnings of 13 cents a share on revenue of $38.5 million for the third quarter, and pro forma earnings of 47 cents a share on revenue of $155 million for the year. Those figures, which included the effect of the Dralasoft acquisition, are broadly in line with Wall Street estimates.

"Verity's second-quarter performance reflects the company's ability to execute," said CEO Anthony J. Bettencourt. "During the quarter, we introduced Verity Extractor, an entirely new enterprise-class extraction software, released enhanced versions of both search and content capture products, received industry accolades for our technology and formed and extended customer relationships."

Verity, Sunnyvale, Calif., said Dralasoft makes Java-based technology for business process management. The company also said the first product out of its Yahoo! partnership would allow its customers to "simultaneously search the high-value information in internal repositories as well as all of the relevant Web content indexed by Yahoo! Search."

Late Thursday, Verity rose 42 cents to $13.23.