- Associated Press - Thursday, January 27, 2011

SUNNYVALE, CALIF. (AP) - Ariba Inc. on Thursday said its fiscal first-quarter profit leaped, largely reflecting a big gain on the sale of its outsourcing business.

The company, which makes spending-management software, said its net income for the three months ended Dec. 31 was $42.1 million, or 47 cents per share, compared with $2.2 million, or 3 cents per share, in the 2009 period.

The results reflected a big gain on the sale of the outsourcing business to management consulting firm Accenture PLC. The $51 million sale closed in November, and Ariba recorded an after-tax gain of $38.7 million for the quarter.

Excluding that and other one-time items, Ariba said its adjusted earnings from continuing operations was 18 cents per share, which matched analysts’ expectations, according to FactSet.

Revenue rose 20 percent to $90.4 million, from $75.2 million in the year-ago period.

Wall Street forecast revenue of $86.7 million.

By business segment, subscription and maintenance revenue for the quarter rose 13 percent to $65.9 million. Services and other revenue jumped 46 percent to $24.6 million.

For the current quarter, Ariba said it expects revenue to range between $103 million and $109 million, and adjusted profit between 17 cents and 19 cents per share

Wall Street was forecasting revenue of $87.8 million, and adjusted profit of 19 cents per share.

Ariba shares slipped 55 cents to $24.50 in aftermarket electronic trading.

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