Back in July, the enterprise software developer Saba (NASDAQ:SABA) saw its stock price plunge 21% to $5.46 as the company had difficulties moving to Web-based approaches. However, the latest quarterly report shows things are looking much more promising, and the stock price surged 11% on the earnings news. This could mean the beginning of better times for shareholders.

In the fiscal second quarter, revenues increased 61% to $26.2 million (part of the boost came from the acquisition of Centra Software). There was a 36% increase in software license revenues, to $6.9 million. Such revenues are critical, since they generally lead to ongoing services and maintenance revenues.

There was also traction in Saba's Web-based software segment, with a 371% increase in sales to $3.8 million.

However, the company posted a net loss of $1 million, or $0.04 per share, which is down from net income of $131,000, or $0.01 per share, in the same period a year ago. The good news is that the latest quarter showed positive cash flow from operations of $3.1 million.

Saba develops so-called human capital management (HCM) software. This helps customers with things like online training, employee performance tracking and evaluation, and even succession planning (that is, planning for when key employees leave). Some of its marquee customers include Starbucks (NASDAQ:SBUX), Dell (NASDAQ:DELL), Cisco (NASDAQ:CSCO), Bank of America (NYSE:BAC), and AT&T (NYSE:T).

In terms of guidance, Saba expects revenues for the fiscal third quarter to range from $26.5 million to $27.5 million and net income to range from breakeven to $0.03 per share.

What's more, the company is about to launch a variety of new products during the first half of 2007. For example, Saba will now be launching a version for Apple (NASDAQ:AAPL) computers, as well as products for new categories, such as talent management.

With its larger customer footprint because of the Centra acquisition, Saba has an opportunity to boost revenues and profitability. In other words, it looks like the momentum will continue.

For further Foolishness:

Dell is an Inside Value and Stock Advisor recommendation. Starbucks is a Stock Advisor pick, and AT&T is a former recommendation of the newsletter. Bank of America is an Income Investor selection.

Fool contributor Tom Taulli does not own shares mentioned in this article. He is currently ranked 328 out of 17,523 in Motley Fool CAPS.