Newport Beach-based TriZetto Group Inc. said Tuesday a pickup in demand for healthcare-related software helped boost earnings in the second quarter.
TriZetto, which provides software and services to health plan operators, benefits administrators and others, said revenue was $88 million in the quarter, up 21% from a year earlier.
The company’s net income was $6.4 million, up 28% from a year ago.
“The pace of change in the payer market continues to accelerate, driven by changing employer and consumer behavior, more state and federal government initiatives and rapid evolution and adoption of new technologies,” said Jeff Margolis, TriZetto’s chairman and chief executive, in a release.
TriZetto said it expects sales of $325 million to $340 million in 2006, up 11% to 16% from a year ago.
2006 adjusted earnings, which excludes stock-based compensation expense, is expected to be $63 million to $67 million, up 31% to 39% from last year.
Meanwhile, TriZetto updated a legal battle with McKesson Information Solutions LLC, which filed a patent infringement suit against TriZetto in 2004 over some software.
In April, a court ruled that the software doesn’t infringe on 12 of the 15 claims that McKesson alleged were violated. Later that month, a jury found that TriZetto’s software infringes on two of the claims.
TriZetto has filed several motions seeking to invalidate the patent. No ruling has been made. A second jury trial is set for Oct. 3.
The company said it has been in settlement talks with McKesson.
