caught a big bid in the premarket session after saying revenue will come in at the high end of its previously announced $45 million to $50 million estimate.
Assuming this estimate holds, it will be the first quarter of sequential revenue growth for the company in two years. Cirrus didn't update earnings guidance; the current Thomson First Call consensus estimate is for a loss of 11 cents a share.
The guidance sent Cirrus' shares up 67 cents, or 12%, to $6.19 on the Instinet premarket session.
It's been hard sledding of late for Cirrus. The $50 million revenue target for the quarter is down 46% from a year ago, when the company brought in $73 million. The company has posted eight consecutive quarters of declining revenue from a peak of $180 million in the first quarter of 2001 to a low of $40 million in its first fiscal quarter reported in June of this year. The company is expected to lose 42 cents per share on $186 million in revenue for all of fiscal 2004, after losing 35 cents per share on $262 million in revenue in 2003.
The company also said that its cash reserves will edge higher to $127 million in the second quarter, after it collected $7 million in a legal settlement. Cirrus also expects to collect $45 million during its third quarter after settling a patent infringement case with
, and an additional $9 million in a legal settlement with
. The money will bring its cash balance near $181 million.
At its current trading price of $5.52 per share, the company has a market capitalization of $463 million, meaning the market places a modest $280 million value on its ongoing operations and intellectual property. That's quite a reversal from the heady days of 2000 when the stock traded as high as $48 per share.
The stock is trading near its 52-week high, after trading as low as $1.47 late last year.