Revenue surge boosts Clarify earnings
Software maker Clarify posts strong third-quarter earnings boosted by an 84 percent revenue jump that surpassed Wall Street estimates.
The company, which was acquired this week by telecommunications firm Nortel Networks, said net income for the quarter reached $5.9 million, or 23 cents per share, compared to net income $2 million, or 9 cents a share in the same period a year earlier. Analysts polled by First Call projected the company to earn 19 cents per share.
For the quarter, Clarify said revenue was $63.3 million, an increase of 84 percent from revenues of $34.5 million reported in its year-ago period.
In early trading, shares of Clarify rose 2.06, up 3 percent, at 68.44.
Clarify sells customer relationship management software, or front office software, intended to automate a company's sales, marketing, and call center operations. The company said revenues growth for the quarter was due to larger deals landed through its partnerships with several firms, including Ernst & Young and PricewaterhouseCoopers and strong sales of Clarify eFrontOffice, the company's Web-based suite of customer relationship management applications released earlier this year.
On Monday, the company, which competes in the high-growth front office market against rival Siebel Systems, was acquired by Nortel Networks in a stock swap worth $2.1 billion. The news sent Clarify's stock soaring, into the $60 per share range, compared to last week's $40 range.
"Obviously, our playing field will expand enormously due to our recently announced acquisition by Nortel Networks," Clarify chief executive Tony Zingale said in a statement. "Nortel's global reach, market presence, and commitment to Clarify's vision will allow us to really juice up our strategic programs."