RightNow Tech Reports Strong 3Q10; Jefferies & Company Maintains Hold Rating

Jefferies & Company is reporting that RightNow Technologies, Inc. RNOW reported a much stronger 3Q10 bookings than expected, bucking the decelerating trend that had begun last quarter. “We have materially increased estimates, raising our CY10 revs/ NG EPS from $178M/ $0.39 to $184M/ $0.46 and CY11 revs/ NG EPS from $204M/ $0.66 to $215M/ $0.70,” Jefferies & Company writes. “We have modestly increased our CFFO estimates as well, but management continue to point toward CY12 (rather than CY11) as the big year for cash flow as billings compound.” While Jefferies & Company maintains its Hold rating pending further work, it says that improved bookings momentum coupled with bigger cashflows ahead in 2012 (when billings compound) could continue to be positive for the stock. RightNow Technologies currently trades for $23.48.