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This time, Wall Street loves Danka

Wall Street can be tough. But it can also be forgiving.

Danka Business Systems, the St. Petersburg-based company that sells copiers and other office equipment worldwide, is learning that quickly.

Shares in Danka rose $2.87{ Thursday after it reported first quarter earnings that were up 32 percent from a year ago.

Just a month ago, investors drove Danka's shares down $14.56\ after it released estimates of the first quarter earnings. The estimates weren't too far off from Thursday's numbers.

What gives?

The earnings, while good, weren't what analysts had expected a month ago. Investors hammered the company's American Depositary Receipt shares in June because they wanted to see more profits.

When Danka finally released its earnings Thursday, however, the numbers didn't surprise investors.

Danka's shares were among the most active on Wall Street Thursday. More than 2.7-million of its ADRs changed hands, five times its average daily volume over the past six months.

The company said its net earnings reached $14.3-million, or 25 cents per share, up from $10.9-million or 22 cents per share in the comparable quarter a year ago.

Revenues increased 61 percent in the quarter, to $402-million.

Many analysts had been expecting earnings of 29 cents per share before Danka released the estimates last month.

The earnings were smaller than had been expected because of expenses associated with the expansion of Danka's sales force.

In a statement, Danka chief executive Dan Doyle said he thought the expenses eventually would pay off for the company.