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Quest Shares Up on Analyst’s View of Strong Q4

Finally, some good news for Aliso Viejo-based Quest Software Inc.

On Thursday, an analyst predicted strong fourth-quarter results for the data-monitoring software maker, which has been bogged down in one of Orange County’s more notable stock options ordeals.

Quest’s shares were up more than 4% in midday trading on the news.

Tim Klasell of San Francisco-based Thomas Weisel Partners, suggested strong sales in Europe, the Middle East and Africa would boost results for the recently ended quarter.

Analysts on average expect quarterly sales of $152 million, which would be up 5% from a year earlier.

Quest has been under investigation by the Securities and Exchange Commission since June for the timing of past stock option grants.

Hundreds of companies also are under review for backdating options. Quest’s has been of particular note.

Former chief financial officer M. Brinkley Morse, who had been a director since 2001, resigned in late November rather than be interviewed by an internal board committee reviewing option grants.

Quest has withheld full results as the probe continues but has said they expect to restate from 2000 through the first quarter of 2005 to account for the option grants. No dollar figure has been attached yet.

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