Not so much because of earnings per se but because the earnings included a $5M negative effect of exchange rates (which can be fixed by hedging), higher taxes (again, need to manage income reporting better) and a $7.5M stock options expense. There was also dillution from the June 2 acquisition of JBoss which shaved $.04 off the top.
So what looks like a 25% miss is more like a 40% beat.
That's what I'm playing. Of course I wouldn't do that if the fundamentals weren't there...
New client additions are through the roof and turnover is less than 1% and the company is accellerating growth, which is so far not fully reflected as each quarter has a 50% lagging effect on recognizing subscription revenues (SIRI has the same problem).
There is nothing in these numbers that justifies a 10% sell-off, especially on a big Nasdaq day.
UPDATE 11:55 AM: RHAT gone at $1.20, I'm very pleased with that. Still looks good but I said it was a day trade and I didn't want to change strategy with looming Fed meeting. If it breaks $23 post Fed I might want back in.