Blackboard’s total revenue for the quarter ended Sept. 30, 2010 was $120.8 million, an increase of 23 percent over the third quarter of 2009.

Product revenues for the quarter were $112.3 million, an increase of 28 percent over the third quarter of 2009, while professional services revenues for the quarter were $8.5 million, a decrease of 19 percent over the third quarter of 2009.

"We are pleased with our results in the third quarter. Our renewal rates were once again strong during our peak renewal quarter, emphasizing the unmatched value we provide to our clients, and that we remain a core part of their learning infrastructure," said Michael Chasen (News - Alert), CEO and President of Blackboard Inc., in a release.

"During the quarter, we experienced solid demand across our solutions with particular interest in our new Blackboard (News - Alert) Mobile Learn offering, as well as continued success with Blackboard Managed Hosting,” Chasen added. “Additionally, the integration of both Elluminate and Wimba continues to track along very well under our new Blackboard Collaborate banner. We have successfully rolled out our initial product roadmap to the client community and received a very positive reception from the client community."

Non-GAAP adjusted net income for the third quarter of 2010, which includes adjustments, was $15.6 million, resulting in non-GAAP adjusted net income per diluted share of $0.45 compared to non-GAAP adjusted net income of $13.3 million and non-GAAP adjusted net income per diluted share of $0.40 for the third quarter of 2009.

"Financial results were solid across the business in the third quarter," added John Kinzer, CFO of Blackboard Inc. "Based on the ongoing strength of our business and improvements in invoicing and cash collections, we are raising our expectations for free cash flow for the full year."

Blackboard acquired both Elluminate, Inc. and Wimba, Inc., two of the leading providers of synchronous learning and collaboration technology to the education markets. The newly combined businesses have been integrated under the Blackboard Collaborate brand.

Blackboard and McGraw-Hill Higher Education, a unit of The McGraw-Hill Companies formed a business partnership to introduce a new, learning management offering that joins McGraw-Hill's content, assessment engines, and adaptive learning tools with the latest capabilities of Blackboard's Web-based teaching and learning platform, Blackboard Learn.

Blackboard and Barnes & Noble Inc. introduced a partnership that aims to make it easier for millions of higher education students to access and use interactive e-textbooks as part of their online course experience.

Blackboard and Follett Higher Education Group launched a partnership to give students the ability to purchase and use digital textbooks directly in the Blackboard Learn platform with a free integration that brings interactive texts into the course experience.

Blackboard's solutions allow thousands of higher education, K-12, professional, corporate, and government organizations to extend teaching and learning online, facilitate campus commerce and security, and communicate more effectively with their communities. Founded in 1997, Blackboard is headquartered in Washington, D.C., with offices in North America, Europe, Asia and Australia.

Reuters reported that Blackboard forecast fourth-quarter results largely in line with market view.

Blackboard expects fourth-quarter adjusted earnings of 31-35 cents per share, on revenue of $114.8-$118.8 million. Analysts on average expect earnings of 32 cents a share, on sales of $116.6 million, according to Thomson Reuters (News - Alert) I/B/E/S.