Mercury Interactive Posts 1Q Gains In Sales And Profits

Mercury Interactive Corp. on Wednesday reported a 22% year-over-year gain in revenue to $110.4 million for its first quarter ended March 31. The supplier of software tools used for application testing, tuning, and performance management reported net income of $18.1 million, or 20 cents per share, up 20% from a year ago.

Mercury Interactive attributed its strong showing to continued demand for its products, which tech managers use to improve IT system performance and reduce costs. Revenue from license fees in the quarter was essentially flat, however, at $44.8 million, up only marginally from $44.7 million in the year-ago quarter, while increases in subscription, maintenance, and professional-service fees helped boost the company's top line.

For the current quarter, Mercury Interactive expects revenue to be in the range of $110 million to $117 million, with earnings of 16 to 22 cents per share. For the year, the company estimates revenue will be between $460 million and $500 million, with earnings in the range of 82 to 97 cents per share.