Wedbush Raises Ulticom Estimates

Analyst Scott Sutherland sees continuing strong demand for signaling software

Wedbush Morgan raised its estimates on network-software provider Ulticom (ULCM ).

Analyst Scott Sutherland says first-quarter results beat his and consensus estimates along with the company's guidance. He notes revenues of $13.2 million surpassed his $11 million estimate, driven by strong demand for signaling software for prepaid billing. He says, for the second quarter, the company sees 5 cents EPS on slightly higher revenue.

For fiscal 2005 (Jan), Ulticom increased the EPS guidance to 21 cents on $54 million revenues. Sutherland upped his 4 cents second-quarter EPS estimate to 5 cents, upped the 16 cents fiscal 2005 estimate to 22, cents, and upped the 21 cents fiscal 2006 estimate to 29 cents.

He says the company continues to have a strong balance sheet, exiting the first quarter with cash and investments of $235 million. He rates hold on valuation. Sutherland has a $10 target.

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