SAN FRANCISCO -- Shares of
surged Wednesday, following a report that the company's chips will soon be available in
SiRF's GPS chips, which communicate with satellites to track an individual's physical location, are integrated in everything from automobiles to cell phones.
According to Dougherty analyst Jeff Evanson, the San Jose, Calif.-based company is for the first time providing GPS chips to No. 2 cell phone maker Motorola. And the Motorola phone, the GSM Q9, due out in October from
, is targeted at mainstream consumers, with a sub-$200 price.
"The Q9 is a mass-market smartphone that we believe could translate to chipset volumes between 250K-300K/quarter for SiRF," wrote Evanson in a note to investors.
Dougherty makes a market in SiRF shares.
SiRF's stock was up 8.3%, or $1.52, at $19.77 in midday trading Wednesday. The stock had fallen nearly 20% since reporting its second-quarter financial results in July.
Analysts polled by Thomson Financial expect SiRF's revenue to increase 15% sequentially to $85.3 million, with EPS of 22 cents in the current quarter.
The company has been a perennial subject of acquisition rumors, as big chipmakers seek to beef up their products' features by adding GPS functionality. This summer SiRF announced a licensing deal with
According to Evanson, SiRF's design win with Motorola also means that SiRF is making progress in reducing the power consumption of GPS chips.
"We believe this paves the way for GPS to be integrated into more Motorola handsets in the future," wrote Evanson.