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TTI will meet Q3 forecasts, says SSB

Analysts reiterate Buy rating and price target of $18

Salomon Smith Barney predicts that TTI Telecom International (Nasdaq:TTIL) (TTIL) will meet third-quarter estimates.

Analysts Robin Nazarzadeh and Victor Halpert say TTI boasts high visibility and top-notch customers such as Nortel (NYSE:NT), Sprint PCS (NYSE:PCS) and Dutch communications company KPN (NYSE:KPN).

The analysts estimate that TTI's recent deal with Nortel will contribute $10 million to $15 million in revenues. An accord with KPN could be worth $10 million.

Much of TTI's revenue derives from a small number of customers, SSB wrote. Just five buyers generated 30% of the company's year-2000 revenues, but its customers are sound, the analysts wrote.

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The September acquisition of the View-7 product line and technology from Inrage Technologies was a good deal, Nazarzadeh and Halpert rule.

Inrage is the sole supplier of testing equipment for TTI's products, and also, the acquisition won't burden the company's cash reserves, since payment will be effected over three years.

The analysts reiterated their $14.8 million revenue forecast for the third quarter, and estimated earnings per share of 28 cents. They also affirmed their price target of $18 for TTI and Buy rating.

TTI Telecom, a member of the Team Computers and Systems group controlled by Shlomo Eisenberg, develops, markets and supplies OSS support systems and NMS network management and monitoring systems.