Spectrian Up 10% To 52-Week High; 1Q Earnings View Cited
Have you seen this????? ---- Peter
By Shawn Young
NEW YORK (Dow Jones)--Shares of Spectrian Corp. (SPCT) leapt to their second 52-week high in as many days Wednesday as investors gained confidence that the company's earnings will surpass expectations, said Scott Searle, analyst at UBS Securities Inc.
Searle said he is confident the Sunnyvale, Calif., wireless communications equipment maker will easily exceed his first fiscal quarter earnings estimate of 35 cents a share. In the year-ago June-ending quarter, the company lost $5.3 million, or 66 cents a share, on revenue of $9.9 million.
''We have turned the company around and had three successive quarters of improved earnings,'' said company spokesman Peter McIntyre. ''We're profitable again.''
McIntyre attributed the rise in share price to increased investor confidence and rising expectations on Wall Street. He said the company has not released any news that would account for the stock surge.
Spectrian shares reached an intraday high of 28 1/4 earlier. More recently they were up 2 5/8, or 10.3%, to 28 on Nasdaq volume of 791,000. Average daily volume is 228,400. Shares hit a previous 52-week high of 25 7/8 Tuesday before closing at 25 3/8, up 1 3/8,
or 5.7%.
Searle said his confidence in Spectrian's earnings stems from a recent string of large contracts announced by Spectrian's main customer, Northern Telecom Ltd. (NT).
Spectrian does about 80% of its business with Northern Telecom, Searle said.
''As Northern Telecom goes, so go they,'' Searle said. ''The strength of Northern Telecom is really what's driving it.''
The company also has benefited hugely in the past year from the arrival of a new president and chief executive, Garrett A. Garrettson, Searle said.
Garrettson has helped revamp product design to reduce costs and make the company better accommodate large-scale orders, Searle said.
Spectrian provides Northern Telecom with amplifiers used to transmit wireless signals. |
