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FileNet: Profit Up, Revenue Falls

Costa Mesa-based FileNet Corp. beat profit expectations in the third quarter but fell slightly short on revenue, the software maker said Tuesday.

Shares of the company slipped 2% in afterhours trading.

FileNet posted revenue of $101.6 million during the quarter, up 5% from a year ago, but slightly less than analysts’ estimates of $101.8 million, according to a survey by Thomson Financial.

The company reported net income of $8.55 million, up 34% from a year earlier and better than estimates of $8.12 million.

FileNet makes software and provides services for managing documents on corporate networks. The company said its software business contributed to the growth with $38.5 million in revenue, up 8.5% from the year-ago period.

Last month, FileNet said it would pay $11 million for Canada’s Yaletown Technology Group, a maker of software that helps companies comply with the Sarbanes-Oxley Act and other regulations.

FileNet said it didn’t expect the Yaletown acquisition to affect its financial results for the year.

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