Northern, WI 2/7/12 (StreetBeat) -- SolarWinds (NYSE: SWI) said it earned 29 cents in the fourth quarter, excluding items, on revenue of $55.6 million, ahead of views.The business software maker raised revenue guidance for 2012 and kept its profit outlook in-line with earlier company forecasts.
Analysts polled by Thomson/Reuters had estimated profit of 25 cents per share on revenue of $53.87 million.
SolarWinds, a maker of communications network management software, said it earned 29 cents in the three months ended Dec. 31, up 20.8% from the year earlier period. Sales rose 34% to $55.6 million, ahead of forecasts for 30% revenue growth.
On a GAAP basis, diluted earnings per share were 22 cents in the fourth quarter of 2011 compared to 21 cents for the fourth quarter of 2010.
SolarWinds shares jumped at the opening bell. The stock had retreated 4% on Monday after surging to a new high last Friday.
In the fourth quarter, SolarWinds spent $51 million in cash to acquire DNSstuff.com and DameWare Development. The company has focused on expanding product lines and geographically.
"In 2011, we successfully executed against an aggressive plan to extend our unique brand of powerful, affordable, and easy to use IT management software far beyond our traditional network management roots," said Kevin Thompson, SolarWinds president and chief executive officer, in a statement.
Referring to the December acquisitions, Thompson added: "We estimate that we more than doubled our total addressable market opportunity, by dramatically increasing the range of IT management problems our products can solve and our relevancy to IT professionals in any size of business."
In 2012, SolarWinds said it expects revenue in a range of $245 million to $255 million, or 24% to 29% year-over-year growth. SolarWinds said it expects non-GAAP diluted earnings per share of $1.10-$1.15.
"In 2012, we plan to continue disrupting the IT management space, by reshaping expectations around how enterprise software is built, purchased, and used, in order to drive another year of success at SolarWinds," said Thompson.
In early November at an analysts day, Austin, Tex.-based SolarWinds had forecast 2012 sales growth in a range of 23% to 27%.
Consensus 2012 estimates were about $243 million in revenue with EPS of $1.13.
SolarWinds is part of this week's IBD 50, which includes the top 50 stocks based on fundamental and technical factors. SolarWinds is one of seven IBD 50 stocks reporting earnings this week.
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