Like a Phoenix, PTEC Rises 7% on Q3 Upside

Shares of computer BIOS software provider Phoenix Technologies (PTEC) are on the march, though the stocks gains have faded a bit during the day since the company this morning reported Q3 sales in line with estimates and a net loss per share not as bad as expected.

Revene rose 9% to $17.3 million, the company reported, ahead of the average $17 million estimate, while the loss of 10 cents, excluding some costs, was six cents less than estimates.

Software “bookings,” separate from revenue, rose 55% year over year.

In a conference call with analysts, CEO Woody Hobbs said the company was transitioning to a new revenue model where it hopes to garner dollars in the after-market versus merely taking a flat payment for each PC. Products such as “HyperSpace,” which is a means of running laptops without the traditional boot-up procedure required of the operating system, will be able to be upgraded by consumers after they buy a PC, with new features, and Hobbs said Phoenix hopes to get a portion of that upgrade revenue.

Analysts, however, will be frustrated in their attempts to model the bookings for HyperSpace and other products, he said. “Trying to match shipments with customer subscriptions will be difficult, especially at first when both units shipped and OEM marketing campaigns are ramping up,” said Hobbs.

HyperSpace is being promoted by both Advanced Micro Devices (AMD) and Intel (INTC) for use on their laptop chips.

On a conference call with analysts, CFO Richard Arnold said the company’s “datapoints” regarding the PC market support industry expectations for a “return to decent growth” in PC units in 2010.

This afternoon, PTEC shares, which initially rose more than 7%, are now up 12 cents, or $4.15, to $3.01.