Profit Pumps Up Sycamore

It earns 3 cents a share on an adjusted basis.
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Sycamore (SCMR) shares jumped Tuesday after the company blew past sales and profit goals in the fiscal first quarter ended Oct. 29.

The Chelmsford, Mass., networking equipment shop posted net income of $6.9 million, or 2 cents a share, on sales of $27.3 million. That compares with a loss of $7.9 million or 3 cents a share, on revenue of $14.2 million in the year-ago period.

Excluding the cost of stock compensation, Sycamore posted an adjusted profit of 3 cents a share in its fiscal first quarter. In the year-ago period, Sycamore had an adjusted loss of 3 cents a share.

Analysts were expecting breakeven results on $17.6 million in sales for the quarter.

The first quarter "was a strong quarter across the board as Sycamore delivered significant revenue growth on a quarter-over-quarter and year-over-year basis," CEO Dan Smith said in a press release Tuesday.

The company says solid sales of optical switching gear to leading telcos were a big contributor to the strong financial performance.

Sycamore shares rose 54 cents, or 14%, to $4.34 in premarket trading Tuesday.