Shares of penny stocks

Interwave

(IWAV)

shot up Tuesday morning after the company said it got an order for a wireless setup from an undisclosed customer.

Interwave said the initial order is worth $1 million and the contract could be worth up to $5 million over three years. Interwave said it sold one of its CDMA2000 systems, which include base tranceivers and controllers for deploying wireless systems over large areas like campuses.

"This order helps validate the viability of our CDMA technology," the company said. "Interwave has been working with this customer since 2000, supplying compact GSM radio infrastructure components. This OEM agreement is part of the on-going relationship with this customer, and will cover the CDMA2000 product line."

The shares rose 6 cents, or 40%, to 21 cents on the Instinet premarket.