Descartes Systems Group (TSE:DSG), which provides on-demand, software-as-a-service solutions, rose in afternoon trades after reporting better-than-expected revenue in the fiscal third quarter.
The shares tacked on 1 percent to C$14.35 at 1:21 p.m. in Toronto, stretching this year's gains to 55 percent.
Net income in the three months ended Oct. 31 retreated to $2.2 million, or 3 cents a share, from $3.1 million, or 5 cents a share, in the year-earlier period, the Waterloo, Ontario-based company said in a statement today.
Revenues grew 19 percent to $38.8 million, from $32.7 million a year earlier. That slightly beat the average estimate of 8 analysts polled by Thomson Reuters.
By the end of the quarter, Descartes had $49.3 million in cash, comprised entirely of cash and cash equivalents, an increase of $8.4 million from the end of the previous quarter due primarily to cash generated from operations.
"We're pleased with the company's performance during the third quarter, which led to record results and continued strong growth in revenues and cash flow," Chief Executive Officer Edward Ryan said in the statement. Ryan took over late last month. He had been company's chief commercial officer since 2011.
Descartes has over 171,000 parties using its cloud based services.