Portal Software hurdles third-quarter estimates

Portal Software doubled the Street estimate in its third quarter Tuesday, posting a profit of $7 million, or 4 cents a share, on sales of $72 million.

First Call Corp. consensus expected the Internet software developer to earn 2 cents a share in the quarter.

Portal Software (Nasdaq: PRSF) shares closed off 63 cents to $18.63 ahead of the earnings report.

The $72 million in sales marks a 157 percent improvement from the year-ago quarter when it lost $1.7 million, or 1 cent a share, on sales of $28.1 million.

"We experienced solid performance in the third quarter, reflecting the strength of our portfolio business model," said CFO Jack Acosta in a prepared release. "Revenue performance in Asia and Europe was particularly strong, contributing to bottom-line growth."

Last quarter, Portal Software topped analysts' estimates when it posted a profit of $5.6 million, or 3 cents a share, on sales of $64.5 million.

The stock moved as high as $86 in February before falling to a low of $16.31 earlier this month.

All 13 analysts following the stock maintain either a "buy" or "strong buy" recommendation.

Analysts are expecting it to earn 9 cents a share in the fiscal year.