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UPDATE 2-Software maker Splunk's results beat as client additions rise

Thursday, 21 Nov 2013 | 6:15 PM ET

* Raises full-year revenue forecast to $291 mln-$293 mln

* Third-quarter revenue $78.6 mln vs est. $71.1 mln

* Shares up 9 pct after market

Nov 21 (Reuters) - Data analytics software maker Splunk Inc reported better-than-expected quarterly results due to the addition of more corporate and government customers, and raised its full-year revenue forecast.

Splunk shares rose 9 percent in extended trading.

There was strong demand from federal government customers for forensic and security purposes, Chief Executive Godfrey Sullivan told analysts on a post-earnings conference call.

The company won deals from agencies such as the U.S. Army and Air Force in the third quarter ended Oct. 31. Splunk won 207 deals worth more than $100,000 each in the quarter, including a deal from Intuit Inc.

Splunk raised its revenue forecast for the year ending January to $291 million-$293 million from $275 million-$281 million.

Companies are increasingly turning to software firms to help index and search data using Hadoop, the open-source software widely used in Big Data analysis.

This is driving the growth of Splunk and rivals such as Tableau Software Inc and Tibco Software Inc.

Splunk added 450 customers, including Nasdaq OMX, MegaFon and Tesla Motors, in the third quarter, ending October with more than 6,400 customers.

"Nasdaq expects Splunk to increase uptime, cut resolution times and make the application more secure," Sullivan said.

Splunk said The Washington Post newspaper integrated its software BugSense, which it acquired when it bought BugSense Inc in September, into three mobile applications. BugSense analyses machine-generated data for mobile devices.

Splunk's net loss widened to $16.6 million, or 16 cents per share, in the third quarter from $5.5 million, or 6 cents per share, a year earlier.

Excluding items, the company broke even.

Splunk has reported a quarterly profit only once since going public in April last year.

Revenue rose 51 percent to $78.6 million in the third quarter.

Analysts on average had expected a loss of 1 cent per share on revenue of $71.1 million, according to Thomson Reuters I/B/E/S.

Splunk shares were trading at $65.29 after the bell. The stock closed at $59.90 on Thursday on the Nasdaq, having doubled this year.