Portal Developer Verity Posts a Profit

Software revenue increases by nearly 20 percent compared with same quarter last year.

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Verity Inc., a developer of portal infrastructure software, saw revenues and net profits both rise up slightly in the first quarter of its fiscal year 2003.

For the three months ended Aug. 31, the Sunnyvale, Calif.-based company reported total revenues of $22 million, up from $20.1 million in the same period last year. Verity turned a $1.4 million profit on that revenue, after losing $2.5 million in last years fiscal first quarter.

Software license revenues led the charge, rising from $10.3 million to $12.3 million, while service revenues held nearly steady. The company expects revenues to be between $21 million and $23 million in the fiscal second quarter, while remaining profitable.

Verity Chairman and CEO Gary Sbona said the companys long-term prospects for growth and profitability remain strong.

"While global economic conditions remain challenging, our goal at Verity continues to be maximizing long-term shareholder value, by developing and delivering industry leading products, by prudently managing our expenses and by constantly focusing on sales execution," he said in a statement.

Revenues and profits were down from the fourth quarter of the previous fiscal year, which company officials previously blamed on the economy and the slow summer season, when it lowered earnings estimates earlier this month. Verity met those lowered estimates.