WOW. Check out NUFO today! Up 23%!
Wednesday January 31, 12:09 pm Eastern Time
New Focus jumps 23 pct on higher expected revenue
LOS ANGELES, Jan 31 (Reuters) - Shares of optical networking products company New Focus Inc. (NasdaqNM:NUFO -
news) shot up on Wednesday, the day after it reported higher than expected fourth-quarter earnings and predicted a 60-percent
rise in revenues for its coming fiscal year.
The stock rose 23 percent or $11-3/8 to $60-3/4 on the Nasdaq, where it was among the top gainers in percentage terms.
The San Jose, Calif.-based company's robust revenue came amid market jitters over reduced demand for optical networking, as a weaker economy leads to
smaller corporate capital spending budgets.
New Focus reported pro forma net profits of $2.6 million or 4 cents a share, topping Wall Street's consensus estimate of an operating loss of 3 cents, as compiled
by First Call/Thomson Financial. It raised its revenue guidance, citing strong demand for its products.
``While there may be some slowdown in the traditional portions of the network, they are still spending on the leading edge optical products,'' Chief Financial Officer
Bill Potts told Reuters.
Analysts gave the fourth-quarter report and outlook a collective thumbs-up.
Dain Rauscher Wessels analyst Sanjiv Wadhwani upgraded shares of New Focus to strong buy from buy, with a $100 price target for 12 months.
``The company continues to sign new customers, improve yields, introduce new products, and ramp manufacturing,'' he wrote. |
