Aliso Viejo’s Quest Software Inc., a maker of business software, reported third-quarter results on Tuesday that missed analysts’ expectations on sales but beat on profits.

Quest reported $171 million in sales, down 9% from a year earlier and just shy of analysts’ expected $172 million in revenue.

Excluding charges for stock compensation, acquisitions, write-downs on assets and other costs, the company posted profits of $31 million, down 15% and beating analysts’ expected $27 million.

The company closed the quarter with $362 million in cash and short-term assets.

Quest didn’t give financial guidance for the current quarter with the release of its third-quarter results.

Wall Street analysts, on average, are looking for profits of $34 million on sales of $191 million.

Quest also said it agreed to settle a shareholder class action lawsuit related options backdating that was filed back in 2006.

Quest, along with “certain of its current or former officers and directors” are set to pay $29 million to settle the suit. The settlement is still pending court approval.

In March, Quest settled its case with the Securities and Exchange Commission, which fined one current and two past executives named in the stock options backdating probe.

The Securities and Exchange complaint alleged former chief executive and current Chairman Vinny Smith, former vice president Kevin Brooks and former finance chief John Laskey backdated stock options from 1999 to 2002.

Under the terms of the settlement, the three paid $300,000 in fines without admitting or denying wrongdoing.

Last year Quest took charges to past earnings of about $137 million to account for backdated options. It was the second largest options restating bill locally, albeit a distant second to Irvine-based Broadcom Corp.’s $2.2 billion.

Quest makes software that improves on or helps manage other business programs from Oracle Corp., Microsoft Corp. and others.