The stock price of Retalix Ltd. (Nasdaq: RTLX), which supplies software for retailers, fuel stations and foodservice organizations, has been rising like the price of gasoline at the beginning of a warm summer season.

Since the beginning of the year, its stock has risen 37%, from about $16 at the end of December to around $22 today. On May 21, Retalix announced earnings that handily beat analysts’ expectations, and the stock was pushed up nearly 8% in two days, from $20.80 to $22.40.

But don’t get too excited yet. Those numbers reflect a partial recovery from a dismal 2006. And a closer look at its most recent earnings statement suggests that it still isn’t fully back in the express lane.

Retalix started out as a supplier of software for point-of-sale (POS) systems for retailers. Its software is used in POS platforms from companies such as International Business Machines Corp. (NYSE: IBM) and NCR Corp. (NYSE: NCR), although those companies also compete with Retalix with their own software. The Israel-based company sells products in more than 50 countries, and is operating in over 16,000 grocery stores in the United States and 42,000 worldwide. Its customers include The Kroger Co. (NYSE: KR), Costco Wholesale Corp. (Nasdaq: COST), Super-Sol Ltd. (Israel’s largest grocery retailer) and BP plc’s (NYSE: BP) chain of gas-and-convenience stores.

A couple years ago, Retalix started expanding into other software solutions for its niche markets. It made a couple acquisitions to move into back-office software to help manage inventories, customer relationships and supplier relationships, among other things. A warehouse management system, for example, is more efficient if it can easily synch up inventory numbers as POS terminals record a new sale.

The company is also helping to bring grocers into the Internet age. A Retalix subsidiary, StoreNext Retail Technologies, provides hosted electronic payment systems to independent grocers. In early May, StoreNext announced a collaboration with Earthlink, Inc. (Nasdaq: ELNK) subsidiary New Edge Networks, allowing StoreNext to resell New Edge’s broadband networking and internet services to North American grocery stores. 

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