Aug 27, 2010 10:04 AM PDT
Pervasive Software (PVSW), MindSpeed Technologies (MSPD) and CFI Group (GFIG) all posted gains this morning in early trading as a double-dose of bad economic news hit the broad markets, but with seemingly little effect. As though it was expected and already priced into the markets, the Labor Dept. said today the new unemployment rate is 9.8% (a 26 year high) after the U.S. lost 263,000 jobs in September. The Commerce Dept. then said new orders to U.S. factories fell in August by the largest amount in five months. These new items however didn't chase the bulls away...
Gaining 16.60% ($0.79) this morning is Pervasive Software Inc., (PVSW) http://www.pervasive.com/ currently trading on the Nasdaq in the $5.53 range. PVSW has a new market cap of $99 million. PVSW has a 3-Month average daily trading volume of 42,615 shares and it easily passed that within two hours of trading in today's session.
GUIDANCE UPDATE
PVSW announced late yesterday financial results for the first fiscal quarter ending September 30, 2009 are expected to exceed the company's financial guidance previously provided on July 21, 2009. Good news.
PVSW management said that based on preliminary un-audited financial results, the Company now expects total revenue for the first quarter to be in the range of $11.9 million to $12.2 million and diluted earnings per share would be $0.06 to $0.07. That would be the thirty-fifth consecutive quarter of profitability for PVSW.
The PVSW guidance for the first quarter given in the company's July 21, 2009 press release was for revenue in the range of $10.5 million to $11.5 million and diluted earnings per share of $0.03 to $0.06. Year-over-year for PVSW's Q1, revenue and diluted earnings per share were $11.9 million and $0.07 in 2008.
PVSW management forecasts a positive cash flow from operations of approximately $1.1 million in Q1 2010, ending the quarter with approximately $40.4 million in cash and marketable securities. More good news.
As previously announced, PVSW acquired approximately 258,000 shares of PVSW common stock on the open market at a total cost of approximately $1.3 million, or approximately $5.08 weighted average price per share, during the quarter ended September 30, 2009. Buybacks demonstrate strength in management and balance sheets. PVSW has $7.6 million of authorized repurchase funds remaining under its $10.0 million stock repurchase program announced in March 2009.
TOP LINE
"The database team closed one relatively large transaction with a customer representing approximately $2.4 million in revenue for the September quarter," said John Farr, president and CEO of PVSW. The Company's regularly scheduled earnings release conference call is set for October 20, 2009 and can be accessed at the PVSW web site.
PVSW makes and sells embeddable data management and integration software products worldwide. PVSW was founded in 1994 and is headquartered in Austin, Texas with additional offices in Greenville, South Carolina; Brussels, Belgium; Frankfurt, Germany; Paris, France; and London, the United Kingdom.
At $5.53, PVSW is below its 52-week high of $6.35 set on 06-29-09 and is above its 52-week low of $3.25 set on 11-21-08. At $5.53, PVSW is ahead of both its 50-day and 200-day moving averages. PVSW has trailing twelve month revenues of $47 million and has a trailing twelve month diluted EPS of $0.28. PVSW is widely held by institutions. Its shares out versus float ratio is at parity. Very stable.
Gaining 13.31% ($0.37) this morning is Mindspeed Technologies Inc., (MSPD) http://www.mindspeed.com/ currently trading in the $3.15 range on the Nasdaq. MSPD has a new market cap of $75 million. MSPD has a 3-Month average daily trading volume of 122,595 shares and it surpassed 601,359 shares traded today, nearly five times its average volume, with two hours of today's open.
PRODUCT TO MARKET
Late yesterday after market, MSPD announced the introduction of a dual-channel backplane equalizer and re-driver that is optimized for serial digital interface applications in the broadcast video market. The M21004 equalizer and re-driver is the latest release through MSPD's SDI family of products.
"With this device, we enable system designers to achieve robust operation at data rates up to 3Gbps, without the use of costly connectors, material and components," said Kurt Busch, senior vice president and general manager of MSPD's high-performance analog products group.
VALUABLE BOARD REAL ESTATE
The MSPD M21004 low-power device features universal direct coupled (DC) input interfaces, as well as independent input and output supply rails, eliminating the need for additional level shifters on the circuit board. Integrated termination resistors provide further savings in valuable board real estate. In September, MSPD rolled out both the Comcerto 1000 M83263 and Comcerto 300 M82359 processors at the Broadband World Forum.
MSPD makes and sells semiconductor networking solutions for communications applications in enterprise, access, metropolitan, and wide-area networks (WANs). MSPD primarily provides analog transmission devices. MSPD sells its products directly to network infrastructure OEM's and indirectly through electronic component distributors and third-party electronic manufacturing service providers in the Americas, Europe, and the Asia-Pacific region.
MSPD SETS A 52-WEEK HIGH
At $3.15, MSPD is above its 52-week high of $3.09 set on 09-23-09 and is far above its 52-week low of $0.56 set on 11-19-08. At $3.15, MSPD is ahead of both its 50-day and 200-day moving averages. MSPD has trailing twelve month revenues of $142 million. Its shares out versus float ratio is at parity. Very Stable.
Gaining 6.01% ($0.42) this morning is CFI Group Inc., (GFIG) http://www.gfigroup.com/ which is currently trading in the $7.38 range on the Nasdaq. GFIG has a new market cap of $869 million. GFIG has a 3-Month average daily trading volume of 607,328 shares and it was closing in on that share volume two hours into today's session.
GFIG has no official, broadcast news this morning. GFIG has experienced some ups and downs this week, but is very near to setting a new 52-week high this morning. The GFIG current 52-week high of $7.93 was set on 09-11-09. GFIG stock is majority owned by insiders and institutions and I believe this is where today's support is being generated.
DERIVATIVES and CREDIT DEFAULT SWAPSÂ
GFIG primarily operates a derivative and credit default trading platform. Derivatives will surely come under regulation at some point when Congress takes on market regulations in January, 2010 and GFIG could play a very positive, upside role in developing a 'derivative exchange' which is where the White House and Congressional committees seem to be headed.
In early September, GFIG was ranked the number one credit derivative broker in Risk magazine's 2009 annual interdealer survey. Over the past 12 years GFIG has been ranked as the leading broker in more categories of credit derivatives than any other inter-dealer broker. The GFIG trading platform is called CreditMatch.
At $7.38, GFIG is ahead of its 50-day and 200-day moving averages. GFIG has trailing twelve month revenues of $870 million and a trailing twelve month diluted EPS of $0.17. Its shares out versus float ratio is at parity, very stable and its short % of float as of mid-September is a mere 1.80%.
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