Verity hurdles 3Q estimates

Verity (Nasdaq: VRTY) tore past analyst estimates in the third quarter.

After market close Tuesday, the vendor of information management software reported fiscal third quarter net income of $12.2 million, or 34 cents per share.

First Call's survey of five analysts called for a profit of 12 cents per share. Zack's Investment Research's analyst consensus predicted earnings of 20 cents per share, for the quarter ended Feb. 29.

Third quarter revenue rose to $29.2 million, up 75 percent from $16.7 million in the year-ago period, when Verity earned $3.5 million, or 12 cents per share. Software revenues rose 81 percent, to $22.5 million, or 77 percent of total revenue.

"Verity's business remains strong and on track," said Gary J. Sbona, chairman and CEO. "Our pipeline is robust, and we continue to position the company for future growth, by adding staff in key areas, particularly field sales and product development."

Shares of Verity fell 2 to 58 in Tuesday's regular trading prior to the earnings report. The stock has rebounded sharply since plunging in December following a second quarter earnings disappointment.

Among seven analysts surveyed by Zack's, six recommend Verity with some sort of "buy" rating.>