(RTTNews) - Tuesday, Blackboard Inc. (BBBB: News ), a software applications provider to the the education industry, announced higher profits for the third quarter as sales improved on strong demand during the period. Looking forward, the company lifted its earnings guidance for the fiscal 2009, and also provided guidance for the fourth quarter.

Blackboard's third quarter net income rose to $4.3 million or $0.13 per share from $0.89 million or $0.03 per share reported last year. Excluding the effect of special items, non-GAAP net income increased to $13.3 million or $0.40 per share from $10.2 million or $0.32 per share reported in the comparable period a year ago.

On average, 11 analysts polled by Thomson Reuters expected the company to earn $0.37 per share for the period. Analysts' estimates typically exclude one-time items.

Total revenues for the quarter increased 18% year-on-year to $98.4 million from $83.09 million. Analysts anticipated revenues of $96.63 million for the period.

While product revenues increased 18% to $87.9 million, professional services revenues for the quarter increased 20% to $10.5 million, over the third quarter of 2008. The increase in revenue was driven by strong growth in Blackboard's professional services and managed hosting offerings.

Operating expenses for the quarter increased to $89.42 million from $81.66 million a year ago. Operating income was $8.99 million, compared to $1.43 million last year.
For the nine-month period, the Washington DC-based company reported a net income of $0.198 million or $0.01 per share, compared with a loss of $3.69 million or $0.12 per share last year. Non-GAAP net income increased to $30.66 million or $0.94 per share from $23.58 million or $0.74 per share. Revenues for the period increased to $276.97 million from $227.11 million reported for the same period last year.

Looking forward for the fourth quarter, the company expects GAAP net income in the range of $4.2 million to $6.4 million and net income per share in the range of $0.12 to $0.19. Non-GAAP adjusted net income is expected in the range of $13.3 million to $15.5 million and earnings per share in the range of $0.40 to $0.46. The company anticipates revenue between $96.7 million to $99.7 million for the period.

Street analysts currently expect earnings of $0.41 per share on revenues of $98.17 million for the fourth quarter.

Further, for the fiscal year 2009, the company raised its expectations of GAAP net income to the range of $4.4 million to $6.5 million and earnings per share to the range of $0.13 to $0.20. Non-GAAP adjusted net income is now forecast in the range of $44.1 to $46.3 million and earnings per share in the range of $1.34 to $1.41. Revenue is now projected in the range of $373.6 million to $376.6 million.

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