Profit Surges at FileNet

Net income nearly quadruples.
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Driven by strong sales,

FileNet

(FILE)

increased its profit in the second quarter by nearly 300%, the software vendor reported Tuesday.

The news gave the seller of business intelligence software a quick boost; in recent trading, shares were up $1.65, or 6%, to $28.91.

Revenue for the second quarter was $104.6 million, compared with $94.1 million for the same period last year. Software revenue for the quarter was $40.6 million, compared with $32.7 million a year ago.

Net income was $8.7 million, or 21 cents a share, in the second quarter of 2005, compared with net income of $2.2 million, or 6 cents a share, a year earlier.

Analysts polled by Thomson First Call were expecting a 19-cent-a-share profit on sales of $103.16 million.

Looking forward, the company said it expects sales in the third quarter to total approximately $101 million, including software revenue of about $39 million. The company did not give EPS guidance but said it expected gross margins of about 76% in the quarter.

Analysts had projected third-quarter sales of $102 million and EPS of 18 cents.