, a provider of radio-frequency subsystems for wireless networks, were on a tear Wednesday after the company raised its guidance for the second quarter.
The company said revenue for the second quarter ended June 30 will be in the range of $8.2 million to $8.5 million, compared with prior projections of $6.5 million to $7.5 million. As a result of the increased revenue, gross margin is also expected to exceed previous targets.
Endwave, which is based in Sunnyvale, Calif., said it should report positive cash flow from operations for the second quarter. The net decrease in cash and cash equivalents will probably be less than $1 million for the second quarter after accounting for the
asset acquisition and the early repayment of several equipment leases. The company had been expecting to go through $2 million to $3 million of cash.
Following the estimates, Endwave's stock rose $1.86, or nearly 65%, to $4.74. Volume was more than 600,000 shares by midday. During a normal full session, only about 33,000 Endwave shares trade.
Thomson First Call has a forecast from only one analyst, who is expecting a loss of 32 cents a share on revenue of $6.6 million for the second quarter.
Endwave is scheduled to release its full results on July 29.