Reynolds & Reynolds ( REY) set plans Friday to cut 450 jobs in a cost-cutting binge. The Dayton, Ohio, information management systems and services provider to automotive retailers, also said third quarter earnings rose 16.8% from the year-ago period. The company earned $27.8 million, or 43 cents a share, in the quarter, compared with $23.8 million, or 37 cents a share, a year ago. Analysts polled by Thomson First Call were expecting earnings of 39 cents a share. Third-quarter revenue rose 1.6% from a year ago to $250.4 million. The company expects to earn 40 cents a share to 43 cents a share in the fourth quarter, excluding gains from selling Networkcar or restructuring charges. For the full year 2006, the company expects to earn $1.57 a share to $1.60 a share, excluding gain from selling Networkcar or restructuring charges and for the full year 2007 earnings are expected to be $1.90 a share to $2.10 a share, on revenue growth of 6% to 10% over 2006 revenues. Analysts were expecting earnings of 41 cents a share in the fourth quarter, $1.55 a share in the full year 2006 and $1.87 a share for the full year 2007. The company also expects mid-single digit growth in revenue over the next three years. Third-quarter gross profit rose 5.5% from a year ago to $143.2 million and gross profit margin increased 210 basis points to 57.2%. Operating income for the quarter rose 10.4% to $41.4 million and operating margin increased 132 basis points to 16.5%. The Dayton, Ohio-based company said that it has identified about $40 million in immediate cost savings opportunities, of which more than $11 million have already been implemented. The company said that it plans to cut 450 jobs under its cost reduction and revenue growth plans. It will cut 170 jobs over the next 90 days and will eliminate another 280 jobs over the next three years. The company expects the job cuts to save about $25 million and will incur a charge of about $4 million to $6 million during the fourth quarter to provide for the costs associated with plan implementation, and additional charges of about $8 million to $10 million in fiscal 2007.