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These companies are poised for some serious growth within the software sector, and not only do they have the earnings to prove it, but some very positive things on the horizon. In this article I'll examine how three up and coming software companies look to grow in leaps and bounds.

FalconStor Software Inc. (NASDAQ:FALC): Q4 earnings crushed estimates, despite a decline in revenue. Analysts were expecting the company to show a loss of $0.02/share, when in fact they demonstrated a gain of $0.03/share. That's pretty impressive. The company shares closed at $3.29 on Tuesday. After reporting earnings, shares of the company were up almost 9.0% in After Hours. FalconStor has some very interesting news and there are several signs pointing up for this emerging software firm. Most recently, FALC announced the deployment of its NSS technology to Dell Services in an effort to enable and procure a data migration service. FALC currently has about $11.0M in free cash flow on the books, which makes the idea of a small acquisition very possible. Valued at just $154 million, FALC continues to impress shareholders with positive earnings growth and the acquisition of more and more customers.

Guidewire Software (NYSE:GWRE): Not only did the company beat analysts' estimates by almost $0.19/share, but revenue numbers were through the roof, demonstrating an impressive 30% change year-over-year. GWRE shares were up 12% intra-day and up another 10% after hours. Considered one of the brightest stars in the insurance software sector, GWRE is currently facing off with the likes of Accenture (NYSE:ACN) in what could a tug-o-war for market share. Valued at only about $1.25B, GWRE already has partnerships in place with International Business Machines NYSE: (NYSE:IBM) and Nationwide Insurance. With a P/E Ratio of just under 33, GWRE looks to have some good upside. Look for continued revenue growth in the coming quarters and continued strategic partnerships in effort to gain more and more market share.

Synchronoss Technologies, Inc. (SNCRs): Probably the most impressive of the software companies I've featured, SNCR has the highest potential for growth. Not only were the Q4 earnings very impressive ($0.34 cents actual vs. $0.23 estimate), but the revenue numbers spoke volumes. Analysts had estimated the company to generate $61.6M, however Q4 revenue came in at $62.3M. SNCR was also recently upgraded to Outperform by Wells Fargo, which noted that revenue can grow by as much as 20%+ year over year, and earnings can continue to grow by as much as 30%+ a year.

Source: 3 Up-And-Comers In Software Sector