GEMS- (recommended
to subscribers
on 11/28/04)
BOUGHT
at $1.84 SOLD
at $3.75
On November 2nd 2004 Glenayre Technologies Inc., a provider of network
based messaging and communications systems and software that enable
voice messaging and other enhanced telephony services, reported 2004
3rd quarter revenue of $14.9 million. This compares to $14.7 million
reported in the 3rd quarter of 2003. On a sequential basis revenue was
up 22%.
Net income for the
3rd quarter was $3.5 million or 5 cents per share. This compares to net
income of $2.6 million or 4 cents per share a year earlier. Glenayre
reported a loss from continuing operations of $1.2 million or 2 cents
per share. This compares to a loss from continuing operations of $1.7
million or 3 cents per share in the year earlier period. Gross margins
were 49% which compares to gross margins of 52% in the 3rd quarter of
2003.
During the first 9
months of 2004 17% of revenue from continuing operations was derived
from outside the United States. During the first 9 months of 2004 there
were 4 customers that each accounted for more than 10% of total
revenue. Nortel Networks accounted for 17%, Alltel for 15%, Nextel for
12%, and U.S. Cellular accounted for 12% of total revenue.
During the 3rd
quarter conference call the company stated that it is seeing increased
interest and growth opportunities from carriers outside the United
States. The company says it is confident that it is moving in an upward
direction and said that going forward it is targeting gross margins to
be between 50% and 55% and expects to be profitable in the near future.
Glenayre has cash
and short term investments worth $90.6 million or $1.34 per share. Book
value is $1.37 per share and the company carries no debt. At the
current level the stock has a price-to-sales ratio of 2.3 and a
price-to-book ratio of just 1.3.
6/10/05
- SOLD
AT $3.75 FOR A GAIN OF 104%. DURING THE SAME PERIOD THE
NASDAQ WAS DOWN 1%
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