February 23, 2010 / 1:30 PM / 8 years ago

UPDATE 2-Canada's MKS Q3 profit rises more than three-fold

* Q3 EPS $0.11 vs $0.03 yr ago

* Total revenue rises 16 pct

* Shares touch new yr-high (Adds details, updates stock movement)

Feb 23 (Reuters) - Canadian software and services provider MKS Inc MKX.TO posted a more than three-fold rise in quarterly profit, partly helped by higher revenue from its license and maintenance segments.

However, the company said its interoperability business, which includes products that address issues surrounding application migration, systems administration and network management, is expected to see a long-term decline of about 10 percent annually.

For the third quarter ended Jan. 31, the company reported net income of $1.1 million, or 11 cents a share, compared with $325,000, or 3 cents a share, a year earlier.

Three analysts on average were expecting earnings of 15 cents a share, before special items, according to Thomson Reuters I/B/E/S.

Total revenue rose 16 percent to $15.3 million. License revenue surged 34 percent to $5.0 million, while maintenance revenue jumped 11 percent to $7.8 million.

“We continue to increase our investment in field operations as the driver to license revenue growth,” Chief Executive Michael Harris said in a statement.

Shares of the Waterloo, Ontario-based company were trading down 6 Canadian cents at C$10.80 Tuesday afternoon on the Toronto Stock Exchange. They touched a high of C$10.90 earlier the day. (Reporting by Koustav Samanta in Bangalore; Editing by Anne Pallivathuckal)

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