Business and supply chain software maker

J.D. Edwards & Company

(JDEC)

posted a second-quarter net profit and beat estimates on a pro forma basis as its license fee and service revenue increased.

The company said it earned $3.5 million, or 3 cents a share, compared with a loss of $7.5 million, or 7 cents a share, in the year ago quarter. Not including amortization charges, write-offs, restructuring charges, and other one-time events, J.D. Edwards reported pro forma net income of $7.6 million, or 6 cents a share, a 165% increase over last year's $2.9 million, or 3 cents a share.

According to Thomson Financial/First Call, analysts had been expecting the company to earn 4 cents a share on a pro forma basis.

Total revenue for the quarter grew to $223.6 million from $221.9 million, well ahead of the consensus estimate of $209.9 million. The growth was led by license fee revenue, which increased 23%, while service revenue grew to $169.5 million from $159.6 million last year.

In a press release, the company said its third-quarter results "demonstrated that there is considerable leverage in the business model," but the company didn't offer any further guidance.

Shares of J.D. Edwards closed at $10.49 before the news Wednesday.