THE SPARK: SolarWinds Inc., based in Austin, Texas, earned $16.3 million, or 22 cents per share, up from $15.3 million, or 21 cents per share, in the same quarter last year. Excluding one-time charges, the company said it posted an adjusted profit of 29 cents per share for the recent quarter.
Revenue rose 34 percent to $55.6 million from $41.4 million in the year-ago period, as license revenue jumped 27 percent to $25.3 million and maintenance revenue surged 41 percent to $30.3 million.
Analysts, on average, expected a profit of 25 cents per share on $53.9 million in revenue, according to a FactSet poll.
THE ANALYSIS: Morgan Keegan analyst Jonathan Ruykhaver backed his "Market Perform" rating and raised his price target for the company by $6 to $30.
But he said that while the company's new products have been successful in boosting growth, he doesn't see much room for the shares to go higher.
THE SHARES: In heavy afternoon trading, shares of SolarWinds jumped $2.82, or 8.5 percent, to $36.09, after peaking at a new high for the year of $37.37.
Since the beginning of this year, shares have risen about 19 percent.
