Aliso Viejo-based Quest Software Inc., a maker of business software, on Tuesday reported results for the fourth quarter that were down from a year earlier but slightly ahead of Wall Street’s outlook.
For the three months through December, Quest reported profits, excluding one-time charges of $37 million, down 8% from a year earlier but beating analysts’ expected $35 million in profits.
The company posted sales of $195 million, down 4% but surpassing analysts’ expectation of $188 million in revenues.
Quest said it ended the year with $383 million in cash and short-term assets.
“Overall, these results demonstrate our success through the year in expanding operating margins and delivering high-value solutions to our customers,” Chief Executive Doug Garn said. “We believe that we are entering 2010 with positive momentum in our existing and new markets.”
Investors shrugged off the solid earnings from Quest, perhaps expecting a bigger sign of recovery.
As with other recent results, Wall Street’s reaction to Quest was ho-hum. Shares were down slightly in afterhours trading on a market value of $1.6 billion.
At this stage in the economic recovery, investors seem to be already expecting positive results from companies, which aren’t getting a lot of stock pop when they report.
Investors also may be awaiting a forecast for the current quarter in Quest’s conference call due shortly.
Wall Street analysts, on average, expect adjusted profits of $28 million on sales of $174 million for the first quarter.
Quest’s software improves on the business software made by others, including Microsoft Corp. and Oracle Corp.
