Rational beats 2Q estimates

Rational Software (Nasdaq: RATL) topped analyst estimates in the second quarter.

After market close Wednesday, the vendor for e-business software posted fiscal second quarter net income of $34.6 million, or 17 cents per share, excluding amortization and losses related to Rational's investment in Catapulse. First Call's survey of 10 analysts predicted a profit of 14 cents per share for the quarter ended Sept. 30.

Shares of Rational traded at 58.5 in afterhours activity on the Island electronic communications network, immediately following the release of quarterly results. Rational stock closed Wednesday's regular trading at 57.125, up 2.75 for the session.

Including all expenses, Rational earned $19.7 million, or 10 cents per share.

Second quarter revenue increased 46 percent year-over-year to $187.5 million.

Also Wednesday, Rational announced a partnership with Vignette (Nasdaq: VIGN) that would bundle the latter's technology with a software suite from Rational.>