PurchasePro.com (Nasdaq: PPRO) roseUS$2.70 to $18.62 in morning trading Tuesday after soaring past analystestimates for the fourth quarter ended December 31st.
Credit Suisse First Boston reportedly reiterated a strong buy rating onPurchasePro shares following the news, while ABN Amro reportedly repeated a buy rating on the stock.
PurchasePro chairman and chief executive officer Charles E. Johnson, Jr. said the results”confirm the strength” of the company’s business model.
The Las Vegas, Nevada-based business-to-business (B2B) e-commerce companyreported income before extraordinary items of $7.6 million, or 11 cents pershare, compared with a loss of $6.09 million, or 11 cents, in theyear-earlier quarter. Analysts were reportedly looking for a penny-per-shareloss.
Revenue in the quarter rose to $33.6 million from $2.67 million. The netloss, including a 4 cents per share investment gain, totaled 55 cents pershare, compared with a year-earlier loss of $1.03.
“Adoption by new members has continued to increase, and we expect thatgrowth to be of even greater magnitude in the future,” Johnson said.
According to the company, purchase order volume rose by almost 50 percent during the quarter.
PurchasePro said it added about 110,000 new businesses to its globalmarketplace during the quarter, bringing total membership to 140,000. Arecent deal withAOL Time Warner helped fuel growth, the company said.
AOL and PurchasePro formed an alliance last year to operate amarketplace for companies to buy and sell products and services over theAOL, Netscape and Compuserve properties. The two recently announced anexpanded alliance that includes a print and television advertising campaignfor PurchasePro.