Surging sales buoy Mosaid
By KEVIN BELL, Money Editor, Ottawa Sun
Mosaid Technologies Inc.'s revenues more than doubled for the
second consecutive quarter as the company begins to reap the
rewards from a recovering Asian economy.
Revenues in the second quarter zoomed by 114% to $11.6 million
from $5.4 million in the same quarter last year. In Mosaid's first
quarter, revenue increased by 136%. The surge in sales has put
Mosaid clearly in the black for the third consecutive quarter.
CEO George Cwynar said a recovery in the semiconductor and
DRAM computer memory chip markets are helping to fuel Mosaid's
renewed growth.
In the second quarter, net earnings were $519,000, or 7cents a
share, compared to a net loss of $1.3 million, or 19cents a share, in
the same period last year.
Despite dropping 85cents, or 5%, yesterday, Mosaid's share price
has been surging in recent weeks. The stock closed at $16.40 on the
TSE yesterday, a significant gain from less than $12 at the beginning
of the month.
The shares also got a boost when analyst Todd Coupland of CIBC
World Markets switched his rating on the stock last week from
"underperform" to "strong buy." He has a 12-month target price of
$25.
Cwynar said Mosaid's revenue growth is also being fuelled by the
firm's new patent licensing program.
Deals with Toshiba Corp., NEC Ltd. and Fujitsu Corp., which were
using Mosaid patents without paying, are expected to rake in about
$13 million this year.
Cwynar said six more DRAM manufacturers have been put on notice
that Mosaid expects them to pay for the firm's patents. |
