Shares of DemandTec Inc. (Nasdaq: DMAN) are higher following news after the close on Thursday that the maker of consumer demand management software increased its second-quarter revenue 40%.

Revenue for the three months ended Aug. 31 was $14.7 million, compared with $10 million a year earlier. However, the San Carlos, Calif.-based company slipped to a net loss of $0.26 million, or $0.02 per share, compared with a net income of $0.14 million, or $0.01 per share, during the second quarter of 2006.

“Given the early stage of the consumer demand management market, revenue growth and market share are among the company’s top strategic priorities,” said CFO Mark Culhane in a statement.

The company, which completed its initial public offering in August, sells its software to retailers and consumer product manufacturers so they can optimize prices, promotions and other operations.

“DemandTec has established a leadership position with a number of the largest retailers in the world, and we look to leverage this position in order to continue increasing our presence with consumer products manufacturers,” said president and CEO Dan Fishback in a statement. “We are pleased about our fundamental outlook.”

Customers include such industry leaders as Wal-Mart, Best Buy, Office Depot, Johnson & Johnson and Coca-Cola.

At 12:35 p.m. ET, shares of DemandTec Inc. (DMAN) were up $0.72, or 6%, to $13.72.

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