Shares of compliance and management software maker ArcSight, Inc. (Nasdaq: ARST) were up more than 24 percent in morning trading on Friday after the company announced better-than-expected fourth quarter earnings, and painted a rosier-than-expected picture for the current quarter.

For the fourth quarter, ArcSight’s profit rose more than five-fold to $22.6 million, or 62 cents per share. Excluding items, the company earned 20 cents a share. Analysts on average were expecting earnings of 17 cents a share, excluding exceptional items, on revenue of $50.5 million, according to Thomson Reuters I/B/E/S. Total revenue jumped 41 percent to $55.2 million, over the same period last year.

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ArcSight said it expects adjusted earnings of 11 cents to 13 cents a share, on revenue of $44 million to $46 million for the current quarter.

“We are very pleased with our strong revenue and operating margin growth this past quarter, and look forward to continued success in fiscal 2011,” said ArcSight’s president and CEO, Tom Reilly in a statement. “Increased spending on cyber-security initiatives in the Federal sector, and anticipated enhancements to compliance mandates, should further fuel our long term growth. Our strong financial results, supported by increased market share and industry recognition, reflect the dedication, hard work and perseverance of our team executing on our strategic growth imperatives.”