Sycamore Ticker Shock II
That's two quarters in a row that the optical equipment vendor has surprised the financial community, having announced a fourth-quarter profit back in October, its first quarter without a loss in five years. (See Sycamore Surprises With Profit.)
This time, Sycamore announced first-quarter revenues of $27.3 million, a net income of $6.9 million, and earnings per share of 2 cents. On average, analysts had expected revenues of $16.77 million and an EPS of 1 cent.
The revenues are up a staggering 92 percent compared with the same period a year ago, and up by 48 percent sequentially.
The impact on Sycamore's share price was also noteworthy. Having closed Monday at $3.80, the firm's stock leapt 49 cents, nearly 13 percent, to $4.29 in pre-market trading this morning.
On this morning's conference call, the company attributed its better-than-expected performance to strong sales "across the board," with CEO Dan Smith picking out the company's engagement at KT Corp., a deal brokered by Siemens Communications Group, as a significant contributor. (See Siemens and Sycamore Team up.)
Smith didn't provide any granular information, though, or provide any guidance for future revenues, to the audible frustration of analysts on the call.
He did say, though, that many of the firm's current growth opportunities were with carriers outside of North America, and that Sycamore will look to use its in-house technical talent to develop other business opportunities "in markets other than optical."
— Ray Le Maistre, International News Editor, Light Reading