Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Quest Software (Nasdaq: QSFT) rose more than 11% in early trading after the maker of tools for managing large-scale computer systems reported better than expected third-quarter results. The stock closed up 8%.

So what: Adjusted earnings per share rose two pennies year over to $0.41, or $0.05 better than the consensus. Revenue improved 14% to $220.4 million. Analysts had been calling for $214.5 million.

Now what: Yet both figures paled compared with Quest's ability to generate greenbacks. Cash from operations rose 29% to $23.7 million on the strength of a 143% increase in collections of previously deferred revenue. Does that sort of growth deserve today's run-up? Would you buy shares of Quest Software at current prices? Please weigh in using the comments box below.

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