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Pervasive Software Inc. (NASDAQ:PVSW) updated its guidance for the third quarter of fiscal 2010. The company now expects revenues of around $11.5 million - $11.7 million compared to the previous guidance of $11.0 million - $12.0 million.

Earnings per share is now projected around 6 cents - 7 cents compared to the earlier forecast of 4 cents - 7 cents. This excludes amortization of purchased intangibles and stock-based compensation expense. Including these, EPS is projected between 4 cents - 5 cents. The current Zacks Consensus Estimate stands at 5 cents.

Pervasive has consistently met or exceeded estimates. In the second quarter, the company reported a positive surprise of 20%, while the first quarter was in line with expectations. On an average, Pervasive has come ahead of the Zacks Consensus Estimate by 17% in the past four quarters.

During the quarter, the company bought 252,000 shares for $1.3 million at an average price of $5.05 per share. Pervasive still has approximately $5.3 million authorized repurchase funds remaining under its $10.0 million stock repurchase program announced in March 2009.

Management continues to see solid uptake of Pervasive PSQL v10 in its database products segment, while growth in the integration products continue to be strong.

Earlier, Pervasive reported in-line results for the second quarter driven by growth in international operations (primarily in Europe and Japan).

Outlook for the Fourth Quarter

For the fourth fiscal quarter ending June 30, 2010, Pervasive expects revenue of around $11 million - $12 million.

EPS is now projected around 5 cents - 8 cents, excluding amortization of purchased intangibles and stock-based compensation expense. Including these, EPS is projected between 3 cents - 6 cents.

Pervasive is scheduled to report third quarter results on April 20, 2010.

Headquartered in Austin, Texas, Pervasive provides data management and integration software products to small- and mid-sized enterprises through a well-developed channel of independent software vendors, value-added resellers and system integrators. Its solutions enable customers to manage, integrate, analyze and secure their data.

Source: Pervasive: Tighter Guidance Remains Upbeat