Tech Industry

Rainbow Technologies comes through in fourth quarter

Rainbow Technologies Inc. (Nasdaq: RNBO) topped Street estimates in its fourth quarter Wednesday, earning $3.1 million, or 25 cents a share, on sales of $35.4 million.

First Call consensus expected the Internet security software developer to earn 23 cents a share in the quarter.

Its shares closed up 1 3/4 to 35 ahead of the earnings report.

The $35.4 million in sales marks a 15 percent improvement from the year-ago quarter when it lost $2.4 million, or 20 cents a share, on sales of $30.7 million.

"Strong demand for Rainbow's Internet security products contributed significantly to the company's record growth in 1999," said CEO Walt Straub in a prepared release.

For the year, Rainbow earned 67 cents a share on sales of $121.1 million compared to a profit of 21 cents a share on sales of $109.2 million in fiscal 1998.

Its shares peaked at 35 5/8 earlier this month after falling to a low of 7 15/16 in April.

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

First Call consensus pegs it for a profit of 93 cents a share in fiscal 2000. >