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Technology Stocks : SPSC- Spectrum Sciences and Software Holdings Corp.
SPSC 82.16-20.7%3:59 PM EDT

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From: scooter22758/19/2005 9:17:57 AM
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SPSC- CONTINUES IT’S RUN AHEAD OF THE 2ND QTR EARNINGS RELEASE!!!

Spectrum has continued to gain momentum coming off of last Friday’s close of $0.95. Yesterday’s close of $1.16 marks a 22% increase on above average volume. The average volume over the last 5 days is 331,714.The 30 day avg. volume is 174,135 and the 60 day avg. is 200,295.

I’m expecting a significant revenue increase and an improving EPS picture (approx.$0.02 PPS loss). That net loss is roughly $900K for the quarter but once you factor in the one-time acquisition costs associated with the merger I’m expecting to find that they would have been profitable. Company guidance indicates that they’ll meet or exceed the 2005 yearend revenue target for the combined companies of $100 million and also be profitable for the remainder of 2005. With an impressive balance sheet and approx. $7.5 million in cash or cash equivalents Spectrum should continue this upward PPS trend. IMO this has a $2.50 PPS target by years end and with a strong outlook for both core growth and acquisition growth slated for 2006 this may be one of those few OTCBB gems that you just put away for awhile and then tell stories about.
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