Canada's Absolute Software Corp posted a fourth-quarter profit helped by a large tax gain.

The provider of computer security solutions company reported net income of C$16.5 million ($15.31 million), or 35 Canadian cents a share, compared with a net loss of C$2.3 million, or 5 Canadian cents a share in the prior-year period.

The profit was mainly due to a tax gain of C$16.8 million.

Sales contracts totaled C$20.2 million, down 6 percent from C$21.5 million last year. In constant dollar terms, the company said sales contracts declined 17 percent.

Revenue increased 28 percent to C$14.3 million from C$11.2 million last year.

Analysts on an average were expecting the company to post a loss of 2 Canadian cents a share on revenue of C$15.20 million, according to Reuters Estimates.

Absolute said it expects 2010 sales contracts in the range of of C$80 million to C$86 million, and cash from operations of C$12 million to C$15 million.

Absolute Software shares, which have gained about 25 percent in the past three months, closed at C$5.78 Monday on the Toronto Stock Exchange.


(Reporting by Krishna Chaithanya in Bangalore; Editing by Ranjit Gangadharan)