were trading higher Friday, a day after the GPS software company posted a drop off in earnings.
The San Jose, Calif.-based company reported third-quarter results after the market close Thursday. Shares opened higher Friday morning and were up another $2.37, or 10.5%, at $24.92 on better than double volume in recent trading Friday.
Net revenue in the third quarter was $63.7 million, up from $48.3 million in the third quarter of 2005. Gross margin was 55.6 percent, the same as it was in the prior-year quarter.
The company reported net income of $2.6 million, or 5 cents a share, down from the $14.3 million, or 26 cents a share, it reported in the prior-year period. Net income excluding expenses was $12.2 million, or 22 cents a share, as compared to non-GAAP net income of $13.5 million, or 25 cents a share, in the third quarter of 2005.
Analysts were expecting earnings of 22 cents a share on revenue of $63.1 million.
SiRF said third quarter net income was negatively affected in part by increased employee stock compensation expense associated with company acquisitions.
"I am very pleased with our performance in Q3. We have once again reported record revenues, and record shipment volumes and strong operating profit. Order backlog for Q4 is strong and some customers are requesting early delivery of orders," said Dr. Michael Canning, President and CEO.