Archive for April, 2010

CTI Industries Corp. (CTIB) – Buzz Stock of the Day

Friday, April 30th, 2010

Shares of CTI Industries Corp. (Nasdaq: CTIB) were up as much as 79 percent from yesterday’s close in morning trading after the company announced first quarter earnings of $599,000 or 22 cents per share, up 544 percent from the same period a year ago, driven by higher sales of its pouch and novelty products, and a 3 percent increase in gross margin.

Revenue for the quarter was up 29 percent to $12.4 million, from $9.6 million in the same quarter a year ago.

Sales of pouch products were up 208 percent from $986,000 in the first quarter 2009 to $3,041,000 in the first quarter of 2010. Most of this increase was a reflection of strong continuing sales of zippered vacuumable pouches to a principal customer. Sales of CTI’s proprietary ZipVac™ line of vacuumable pouches also increased.

Novelty product revenues were up 18.6 percent, from $6,580,000 in the first quarter of 2009 to $7,804,000 in the first quarter of 2010. Sales of laminated films showed a modest decline from $1,876,000 in the first quarter of 2009 to $1,367,000 in the first quarter of 2010.

Gross margins increased to 24.5 percent in the first quarter of 2010 compared to 21.5 percent for the first quarter of 2009. This increase is the result of increased production and sales volume during the first quarter of 2010 resulting in lower unit cost than in the same period of 2009 and a change in the mix of products sold to certain novelty and pouch products having a higher margin.

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iRobot Corp. (IRBT) – Buzz Stock of the Day

Thursday, April 29th, 2010

Shares of robotics technology solutions provider, iRobot Corp. (Nasdaq: IRBT) were up as much as 30 percent from yesterday’s close in morning trading today after the company announced better-than-expected first quarter results.

First quarter profit increased to $6 million, from a loss of $2 million in the same period a year ago. Revenue increased 67 percent to $95 million, from $57 million in the same period a year ago.

Analysts polled by Thomson Reuters on average expected the company to earn 4 cents per share on revenue of $83.8 million.

The company said its international home robot revenue more than doubled to $37 million during the quarter, and its government and industrial robot revenue rose 76 percent.

“As a result of outstanding performance by both divisions in the first quarter and good visibility on the rest of 2010, we are increasing our full-year financial expectations,” said chairman and CEO, Colin Angle in a statement.

iRobot anticipates earning between 6 cents to 8 cents per share for the second quarter and 35 cent to 40 cents per share for the full year. Analysts expected the company to post a loss of 4 cents per share for the second quarter and a profit of 23 cents per share for the year.

With $62.9 million in cash and equivalents, and only $3.9 million in long-term debt, the company has also begun to look at opportunities to grow by acquisition, according to CFO, John Leahy. “M&A has moved up the priority list in terms of things we’re spending time on,” he said. However, he added that due to its optimistic view on its own potential for organic growth, the company plans to be “very cautious” in its evaluation of potential acquisition targets.

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Synergetics USA (SURG) – Buzz Stock of the Day

Wednesday, April 28th, 2010

Shares of medical device maker Synergetics USA, Inc. (Nasdaq: SURG) were up as much as 72 percent today after the company said Alcon Laboratories Inc (ACL.N) agreed to pay $32 million for the right to sell some of Synergetics’ products worldwide and to settle all pending litigation between the two companies.

Earlier this month, Synergetics announced a strategic agreement with Stryker Corporation. The agreement includes the sale of Synergetics’ accounts receivable, open sales orders, inventory and certain intellectual property related to the Omni® product line. In addition, the agreement provides for Synergetics to supply disposable ultrasonic instrument tips and certain other consumable products used in conjunction with the Sonopet/Omni® ultrasonic aspirator console and handpieces; and pursue certain development projects for new products associated with Stryker’s intraoperative ultrasound products.

Synergetics will receive between $2.5 million and $3.0 million in proceeds from the transactions once all inventory transfers are completed.

For the quarter ended Jan. 31, Synergetics profit more than doubled to $877,000, or 4 cents per share, from $389,000, or 2 cents per share, in the same period a year earlier. Second quarter revenue slipped to $13 million from $13.7 million due to lower sales neurosurgical products

The company reduced its sales and marketing costs by about $900,000, and trimmed its general and administrative and research and development spending.

Shares of Synergetics have been up as much as 139 percent over the past three months.

Zanett, Inc.(ZANE) – Buzz Stock of the Day

Tuesday, April 6th, 2010

Shares of leading IT consulting company, Zanett, Inc. (Nasdaq: ZANE) soared more than 100 percent from yesterday’s close after the company announced it set an in-house corporate record for contracts signed in a single quarter since the company was founded more than a decade ago.

For the first three months of 2010, Zanett closed more than $17 million in new business from 57 customers.
Volume topped 10 million shares, compared to the 50-day average daily volume of 1.14 million, according to the Nasdaq.
“Throughout the US, corporations are currently hesitant about hiring individuals, due to unknown and unfunded mandates from Washington DC, so they are spending their money on increased capital expenditures,” said Dennis Harkins, President of Zanett. “For any corporation out there , Oracle ERP and other IT spending are a natural beneficiary of a reduction in labor force. Here at Zanett, we have a great national sales force, and they can barely keep up with the demand they see.”