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Starbucks expects to complete a licensing, distribution and marketing deal with Ethiopia this month that would settle a dispute over trademarks for three coffees produced in the African nation.

In a joint statement Thursday, neither the Seattle-based coffee retailer nor the Ethiopian government released details about an agreement in principle that both said they signed after two days of talks in Seattle.

Ethiopia wants to secure rights to three coffee names — Harar, Sidamo and Yirgacheffe — through the U.S. Patent and Trademark Office. So far it has trademarked the name Yirgacheffe, but a final decision has yet to be made on the others.

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CUISINART Supreme Grind Automatic Coffee BURR MILL You’ll be stunned by the quality of your coffee after using this handy machine. It evenly grinds whole beans for richest coffee flavor. It holds 1/2 lb. of beans (enough for 32 cups of coffee) and is fully automatic and easy to operate. The burr grinding process produces a consistently uniform grind that releases maximum flavor from your favorite coffee beans. A heavy-duty motor and durable burr plates grind beans to release maximum flavor and aroma. Polished stainless steel and contemporary Cuisinart styling. Extra-course to ultra-fine — an 18 position grind selector offer ultra-fine to medium and coarse consistencies, ensuring the right grind for any type of coffee. Includes combination scoope/cleaning brush!

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 Starbucks Corp. reported an 18.5 percent rise in quarterly earnings on Thursday, helped by hundreds of new stores and demand for new products including hot breakfast sandwiches and a sugar-free version of its popular Cinnamon Dolce latte.

The company also reported improved operating margins and backed its 2007 earnings forecast, sending shares up 1.4 percent in extended trading.

Second-quarter net income was $150.8 million, or 19 cents per share, in-line with Wall Street analysts’ average estimate, according to Reuters Estimates. In the same period last year, Starbucks earned $127.3 million, or 16 cents per share.

“Starbucks reported a solid, in-line quarter and reaffirmed guidance which should be reassuring to investors,” said Mike Koskuba, analyst with Victory Capital Management.

“In the recent past, operating margins were lower than some investors had anticipated due to higher labor costs, commodity costs and costs associated with store openings. Now, it appears that there should be improvement in margins as we move through the year,” he said.

Revenue rose 19.6 percent to $2.26 billion. Analysts were expecting about $2.3 billion, according to Reuters Estimates.

Same-store sales, a key retail measure that tracks sales at coffee shops open at least 13 months, rose 4 percent, in-line with the company’s long-term goal.

Read: Starbucks earnings rise sharply