Liberate's 3Q loss smaller than expected

Internet software developer Liberate Technologies easily topped analysts' estimates in its third quarter Tuesday, posting a loss of $12.1 million, or 14 cents a share, on sales of $7.5 million.

First Call consensus expected Liberate (Nasdaq: LBRT) to lose 18 cents a share in the quarter.

The maker of software for Internet appliances saw its shares close off 3 1/8 to 70 ahead of the earnings report.

The $7.5 million in sales marks a 68 percent improvement compared to the year-ago quarter when it lost $6.1 million, or 11 cents a share, on sales of $4.5 million.

"These quarterly results reflect continued customer demand for our platform, and continued growth for Liberate as a business," said CEO Mitchell Kertzman in a prepared release.

Last quarter, Liberate beat Street estimates, losing $12.5 million, or 30 cents a share, on sales of $6.1 million.

Ahead of its 2-for-1 split in January, Liberate shares peaked at 148 1/2 after trading at a low of 7 3/16 in August.

All five analysts tracking the stock maintain either a "buy" or "strong buy" recommendation.

First Call consensus expects it to lose 63 cents a share in the fiscal year.

Shares of Liberate have slid more than 45 percent since peaking at the end of December. Liberate was spun off from Oracle (Nasdaq: ORCL), which remains its largest shareholder with more than 47 percent of the company.