Portal Software, Inc. (Nasdaq: PRSF) was up US$3.38 at $14 in early trading Monday after the company announced a license agreement with America Online (AOL).
AOL will license Portal's Infranet business management and billing software
for use to support 
"a wide range of services," the two companies said.
"AOL is constantly looking for ways to enhance our members' online experience, and we look forward to working with Portal Software to utilize the extensive functionality and flexible architecture that the Infranet platform provides," said Robert Horton, senior vice president of corporate information billing systems at AOL.
Portal Software president and chief executive officer John Little said the multi-year contract was a "major milestone" for the company and could be viewed as evidence of Portal's "ability to support the largest, most innovative market-leading companies."
Portal Software, based in Cupertino, California, makes products designed to help companies develop new services and business plans, and to bill their users. The company says its software is used by 80 percent of the world's largest communications companies.
In separate news on Monday, Portal and CoSine Communications, Inc. (Nasdaq: COSN) announced an alliance to offer a package of management and billing services to broadband, wireless and other service providers.
According to published reports, Legg Mason and CIBC World Markets analysts repeated strong buy recommendations on Portal after the new contracts were announced. Credit Suisse First Boston reportedly reiterated a buy recommendation, and Prudential Securities was said to have repeated its accumulate recommendation, along with a 12-month price target of $20 per share.
Portal Software shares are down from a 52-week high of $86 set last February.
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