Rally reports 3Q loss while setting revenue record

BOULDER – Rally Software Development Corp. (NYSE: RALY) posted record revenue but still incurred a loss for the third quarter of its fiscal year 2015 that ended Oct. 31.

The Boulder-based software developer reported revenue of $22 million, an increase of 17 percent compared with the same period a year ago. It recorded a loss of $7.4 million, or 29 cents per share, compared with a loss of $5.8 million, or 24 cents per share, for the same period a year ago.

“Our record third-quarter revenue results highlight the progress we’ve made in improving our performance across the business,” Tim Miller, Rally’s chairman and chief executive, said in a prepared statement.

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“During the quarter,” he said, “our efforts to further our spend discipline while at the same time growing our business resulted in our ability to meaningfully exceed EPS expectations.”

Rally also said the company expects to see total revenue in the range of $24 million to $24.6 million in the fourth quarter, a 22 percent to 25 percent growth compared with the same period a year ago.

Rally picked up new customers during the quarter that included Advance America, Ag Leader Technology, Anxebusiness, Blue Cross Blue Shield of Kansas, Booker Software, Concur, Continnum, Managed Services, Peak Performance, PetSmart, Premier Designs, Pull-A-Part, Smartlogic, Taskstream, University of Texas-Austin and Verint.

The company makes cloud-based, software applications for business customers. It currently has about 530 employees.