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Rational Software Beats Estimates


Rational Software


posted third-quarter earnings that beat analysts' estimates by 2 cents, fueled by 47% growth in revenue for the period.

The Cupertino, Calif., software company said it earned $40.2 million, or 20 cents a share, excluding amortization and other items, compared with $25.6 million, or 13 cents a share, in the same period last year. Eight analysts polled by

First Call/Thomson Financial

produced a consensus estimate of 18 cents a share.

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Revenue for the quarter rose to $215.5 million from $146.2 million a year ago. Analysts on average had called for third-quarter revenue of $204.1 million.

Shares of Rational closed higher at $39.13 in Wednesday trading on the


and lately rose 10.2% to $40.58 in after-hours