Narrative:

This was our first leg of the day. On climbout we were cleared direct ZZZ VOR and climb and maintain 17;000 ft. At approximately 14;000 to 15;000 feet and at 288 KTS I selected VNAV and autothrottles. I noticed that the masi airspeed bug was at 205 KTS; the climb rate was increasing; and autothrottles were reducing thrust slowly. As my first officer and I were trying to figure out the situation the flight attendants called with a cabin issue; which helped distract my first officer. When I noticed we were climbing through 17;000 ft I tripped off the autopilot and autothrottles and began a level off and stopped the climb at 17;900 ft. We returned to 17;000 ft. We then found our problem--the FMC was in an engine out climb mode. I don't believe we exceeded 30 KTS ground speed when I did the throttle burst; but possible. I usually don't see ground speeds approaching 30 KTS. Since this was our first flight I don't know how the speed brake was stowed on the last landing. This was the first time I have seen this engine out situation and will certainly recognize it quickly in the future. Besides the routing check; I will also add this to my CDU preflight check

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Original NASA ASRS Text

Title: B737-700 Captain inadvertently entered engine out mode of FMC resulting in the aircraft pitching up and throttles retard as assigned altitude was exceeded.

Narrative: This was our first leg of the day. On climbout we were cleared direct ZZZ VOR and climb and maintain 17;000 FT. At approximately 14;000 to 15;000 feet and at 288 KTS I selected VNAV and autothrottles. I noticed that the MASI airspeed bug was at 205 KTS; the climb rate was increasing; and autothrottles were reducing thrust slowly. As my First Officer and I were trying to figure out the situation the Flight Attendants called with a cabin issue; which helped distract my First Officer. When I noticed we were climbing through 17;000 FT I tripped off the autopilot and autothrottles and began a level off and stopped the climb at 17;900 FT. We returned to 17;000 FT. We then found our problem--the FMC was in an ENG OUT climb mode. I don't believe we exceeded 30 KTS ground speed when I did the throttle burst; but possible. I usually don't see ground speeds approaching 30 KTS. Since this was our first flight I don't know how the speed brake was stowed on the last landing. This was the first time I have seen this ENG OUT situation and will certainly recognize it quickly in the future. Besides the routing check; I will also add this to my CDU preflight check

Data retrieved from NASA's ASRS site as of April 2012 and automatically converted to unabbreviated mixed upper/lowercase text. This report is for informational purposes with no guarantee of accuracy. See NASA's ASRS site for official report.