Editor’s note: Story courtesy of Philanthropy Journal, a publication of the A.J. Fletcher Foundation.

CHARLESTON, S.C. – Blackbaud (NASDAQ: BLKB), a provider of software and services for nonprofits, says its net income grew for the fourth quarter but fell for the year, while its revenue for the quarter and year both grew, compared to the same periods a year earlier.

The company, based in Charleston, S.C., says it posted net income of $8.6 million, or 19 cents a share, for the three months ended Dec. 31, 2006, up from net income of $6.2 million, or 14 cents a share, a year earlier.

Revenue for the quarter grew to $49.6 million from $42.9 million a year earlier.
For the year, Blackbaud says, net income fell to $30.5 million, or 70 cents a share, from $33.3 million, or 78 cents a share, a year earlier, while revenue grew to $192 million from $166.3 million.

The company says its board has approved an increase in its annual dividend to 34 cents a share from 28 cents, and declared a first-quarter dividend of 8.5 cents a share payable on March 17, 2007, to stockholders of record on Feb. 28, 2007.

Blackbaud also says it had cash and cash equivalents of $67.8 million on Dec. 31, 2006, up $13.5 million from the end of the previous quarter and up from $22.7 million a year earlier.

Blackbaud announced in January it had purchased Target Software and Target Analysis Group — sister firms in Cambridge, Mass., that provide direct-response-marketing services to nonprofits.

CEO Marc Chardon says the acquisition makes Blackbaud "an undisputed market leader in director response market for the nonprofit sector, a significant new market opportunity for us that also adds further critical mass to our rapidly growing subscription-based revenue."