The company earned $7.3 million, or 19 cents a share, down from $7.9 million or 22 cents a share in the third quarter of 2006.

Excluding stock-based compensation, amortization and other expenses, earnings were 22 cents per share in the latest quarter, versus 24 cents per share in the year-ago period.

Revenue rose 18 percent to $140.7 million from $119.1 million.

Analysts, on average, expected income of 18 cents per share on revenue of $140.7 million, according to a Thomson Financial poll.

Ness Technologies' costs included additional payments on prior acquisition of subsidiaries, which increased to $10.2 million from $5.1 million in the year-ago period. The cost of revenue rose to $99.7 million from $85.1 million.

Shares rose 7 cents to $11.51 in morning trading.