Verity posted net profits of $222,000, or 2 cents a share, for the second quarter ending November 30, compared with a net loss of $338,000 or 8 cents a share a year earlier.
Profits were driven, in part, to higher revenues and a drop in the research and development expenses in relation to revenues.
The company's performance surpassed Wall Street's estimates of a net loss of 1 cent a share, according to First Call. Revenues, meanwhile, rose to $11.6 million for the quarter, up 62 percent from a year ago.
The second-quarter performance turns around the company that posted a loss for the previous quarter, which surprised Wall Street and pushed the value of its shares down by nearly half.
Cisco Systems, a major customer, accounted for 33 percent of the company's revenues during the quarter, compared with 20 percent a year ago.
Verity's software products revenue jumped 75 percent to $9.7 million compared with a year earlier. The company sells search and retrieval applications software such as its Search '97 product line.