Saba Software Inc., a provider of employee management software and services, logged a slight increase in revenue, despite a dip in its professional service business, and turned red ink black in its fiscal 2010 first quarter, the company reported Thursday.
Total revenue was $25.8 million, up 2% from $25.3 million a year earlier. License revenue nearly doubled year over year, to $5.7 million from nearly $3 million. On-demand revenue rose nearly 7% to $5.2 million, from $4.9 million in the like period a year ago. License updates and product support accounted for $8.8 million, vs. $8.6 million a year earlier. The one dark cloud was professional services, where revenue slumped more than 30% to $6.1 million.
“As with many of our peers, professional services tapered off during the summer as customers deferred or reduced projects,” said Saba Chairman and Chief Executive Bobby Yazdani on a conference call with analysts Thursday. “We anticipate this to be the bottom for professional services revenue.”
Saba reported GAAP net earnings of $1 million, turning around a year-earlier loss of $2.2 million.