Front-office software startup Epiphany Inc. said in a preliminary earnings report today that its fourth-quarter revenue shot up 521%, but it will still lose money for the quarter.

Epiphany, which makes software that gathers customer data, analyzes it, and uses it for sales and marketing efforts, reported revenue of $8.7 million for the fourth quarter ended Dec. 31. That's up from $1.4 million in the fourth quarter of 1998 and 64% from the third quarter of 1999. Its license revenue was $4.5 million for the quarter, while services were $4.2 million. But the company also posted a substantial loss of $5.6 million, compared with a loss of $3.5 million during the same period the year before.

Wall Street ignored the loss and reacted positively to the news, with Epiphany stock up 7-7/8 to 164-3/8 by midday. Epiphany also announced it will release another 3 million shares of its stock, which has been one of the market's top performers since the company went public last fall. Epiphany reported its results in a filing to the Securities and Exchange Commission as a prelude to the planned offering. The company will release a full earnings report Jan. 26.