Descartes Systems, which provides software and services that aid in the shipment of goods worldwide, reported an upbeat third quarter earlier this week, as revenue grew 10% year over year and income jumped 35%.
Total sales grew to $17 million in the quarter ended Oct. 31, up from the prior year’s $15.5 million. Net income rose to $2.3 million from $1.4 million a year earlier.
Service revenue from its software-as-a-service offerings remains the bulwark of Descartes’ business, accounting for $15.7 million of the total in the quarter. Sales of software licenses accounted for the remaining $1.3 million.
In a Wednesday conference call ringing with optimism, Descartes CEO Arthur Mesher told analysts that the company expected to weather the “sea of uncertainty” in the global economy. In response to an analyst’s question, he noted that while global shipping may decline in the wake of the economic contraction, shipping volume affects about half of Descartes’ revenue, limiting some of the downside risk to the company of a foundering economy.