I wanted to highlight a small-cap stock this AM that I think may have some real mojo in it. PLATO Learning (NASDAQ:TUTR) is a leading provider of computer-based e-learning solutions. The co reported its quarterlies last night and I must say these look way better than the market expected. The stock has gotten hit hard over the past year, sliding from $10 to around $3 and change as the restructuring of their sales and development organizations, coupled with moving towards the software-as-a-service model has disrupted revenue performance.

The positives include:

- Revenue increased to $19.2 mln vs $17.4 mln consensus. This is the first sizable revenue beat in a while.

- Net loss for the qtr was $0.08 per share, $0.07 better than Reuters Estimates consensus of ($0.15) as the co made solid progress in reducing operating expenses. This is the first EPS beat in a while.

- Deferred revenue grew squentially to $42 mln vs $35 mln last qtr signaling success in the transition to a subscription model. (1)

(1) Revenues from products sold on a subscription basis are initially recorded as deferred revenue on our balance sheet and then recognized as revenue ratably over the subscription period.

TUTR hired a new head of sales last quarter (after replacing most of its sales force) and it looks like the person is already making solid progress. The sales force is starting to mature and I'm hopeful we will see continued good performance in the coming quarters.

I think the results posted last night caught a lot of people leaning the wrong way and I suspect the stock may see strong buy interest over the coming days. I would most certainly keep this one on the radar screen as things may be turning around for the co.