While search engine giant Google says the economy is on the rise from its slump, not everyone has had a good quarter.

NaviSite
Colocation and cloud-based hosting and application-management service provider NaviSite reported a year-over-year drop in revenue and operational income during the company's fourth fiscal quarter, ending on July 31. NaviSite recorded an operational loss of $3.5 million, which the company attributed to an arbitration settlement of $5.7 million it entered into during the quarter.

Had NaviSite not entered into the settlement agreement, its operational income in the fourth quarter would have been $2.2 million, or a 62-percent increase over the same period in the previous year, according to a company statement.

NaviSite's reported a revenue of $36.9 million or a nine-percent decrease from the last year.

The company operates 16 data centers in the US and UK. Its newest facility in Charlotte, N.C., was announced on October 1.

Google
Google reported a seven-percent revenue increase over the same quarter last year and a roughly 27-percent increase in net income during the third quarter. The company's revenue in Q3 was $5.94 billion and its net income was $1.64 billion.

"While there's obviously a lot of uncertainty about the pace of economic recovery, we believe the worst of the recession is behind us," Google CEO Eric Schmidt said in a conference call. "We now have the business confidence to invest heavily in the next phase of innovation, hoping to invent the future as we see it. We're going to continue to invest in long-term growth."

The new investment will go to stepping up hiring and innovation, based on the company's 70-20-10 investment principles.

Google's core business - its search engine - will receive 70 percent of the new investment. The company will focus on both improving the quality of the engine and creating more ways for advertisers to spend their money on Google's advertising products.

The 20 percent in the 70-20-10 equation will go to the company's up-and-coming businesses. Google saw a 30-percent quarterly growth in mobile searches during the third quarter. Android - its software stack for mobile devices - has gone "from one device and one carrier in one country to now 12 devices in 26 countries with 32 carriers," Schmidt said.

Google's online video and enterprise businesses are accelerating as well.

The last 10 percent of investment will be focused on innovation and strategic acquisitions. "We're open for business (in) making strategic acquisitions - both large and small."

Tandberg
Video conferencing solution provider Tandberg, which is in the process of being bought out by Cisco, reported a strong third quarter, with an 11.2-poercent year-over-year increase in revenue and a 10.2-percent increase in operating profit.

Tandberg's revenue in the quarter, ending September 30, was $234.7 million and its operating profit was $50 million.

Cisco announced the plan to acquire the Oslo, Norway-based firm for about $3 billion on October 1.