Solarwinds (NYSE: SWI) Profit Jumps 43%, Sales 39%; Shares up 6%

Shawshank, VA 4/26/12 (StreetBeat) – SolarWinds Inc (NYSE: SWI) posted first-quarter profit above analysts' expectations, helped by higher license revenue, and the network management software maker forecast second quarter in line with estimates.

The company, which makes software to move data over business networks, earned $17.1 million, or 23 cents a share, compared with $11.7 million, or 16 cents a share, a year ago.

Excluding items, the company earned 30 cents a share.

Revenue rose 39 percent to $59.7 million. License revenue jumped 35 percent to $27.5 million.

Analysts on average had expected earnings of 25 cents per share, on revenue of $56.4 million for the fourth quarter, according to Thomson Reuters I/B/E/S.

For the second quarter, SolarWinds expects adjusted earnings of 26 cents to 27 cents per share, on revenue of $59 million to $60.2 million.

Analysts were expecting adjusted earnings of 27 cents a share, on revenue of $59.1 million.

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SolarWinds (NYSE: SWI) Tops Q4 Forecasts: EPS Up 21%, Sales 34%

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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