Portal Software, Inc. (Nasdaq: PRSF) was upUS$3.38 at $14 in early trading Monday after the company announced a license agreementwith America Online (AOL).
AOL will license Portal’s Infranet business management and billing softwarefor use to support “a wide range of services,” the two companies said.
“AOL is constantly looking for ways to enhance our members’ onlineexperience, and we look forward to working with Portal Software to utilizethe extensive functionality and flexible architecture that the Infranetplatform provides,” said Robert Horton, senior vice president of corporateinformation 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 tohelp companies develop new services and business plans, and to bill theirusers. The company says its software is used by 80 percent of the world’slargest communications companies.
In separate news on Monday, Portal and CoSine Communications, Inc. (Nasdaq: COSN) announcedan 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 buyrecommendations on Portal after the new contracts were announced. Credit SuisseFirst Boston reportedly reiterated a buy recommendation, and PrudentialSecurities was said to have repeated its accumulate recommendation, alongwith a 12-month price target of $20 per share.
Portal Software shares are down from a 52-week high of $86 set last February.