SCI Systems Inc. (NYSE: SCI) easily hurdled fourth quarter estimates.
In results released after market close Thursday, the Huntsville, Ala.-based contract electronics manufacturer reported net income of $42.8 million, or 60 cents per share. First Call's survey of 19 analysts predicted a per share profit of 57 cents for the quarter ended June 30.
Fourth quarter sales rose to $1.8 billion from $1.59 billion in the year ago period, when SCI earned $36.9 million, or 54 cents a share.
The contract manufacturing industry as a whole has seen brighter prospects in recent months, as PC companies and other high-tech manufacturer step up their outsourcing not only for circuit boards, but in some cases larger systems as well. Thursday's announcement marks a welcome turnaround for SCI, which suffered in the third quarter from a combination of overseas economic weakness and a general slowdown in the PC industry.
Shares of SCI rose 15/16 to 53 7/16 in trading prior to the earnings report. Of 21 analysts polled by Zack's Investment Research, 10 recommend SCI as a "strong buy", nine maintain the equivalent of a "moderate buy" on the stock, and two describe it as a "hold".
Other companies reporting quarterly results:
The nationwide Internet service provider for businesses posted a second quarter net loss of $45.7 million, or $1.22 a share. That was a far narrower loss than the $1.30 a share predicted by First Call's survey of 15 analysts.
Second quarter sales increased 117 percent year-over-year, to $61.9 million. Slightly more than half of that revenue came from Web hosting and other enhanced services. Gross margin increased to 67 percent of revenue, from 65 percent in the previous quarter, largely because of improved economies of scale stemming from acquisitions, the company said.
Verio now hosts more than 265,000 websites and more than 400,000 registered domain names. The company sold more than 1,900 e-commerce packages in the second quarter, compared to 1,350 in previous three month period. DSL clients nearly doubled to 1,600 customers from 850 in the first quarter, as the company launched promotional campaigns in 10 cities. Verio expects to add 11 more by year's end.
The wireless communications provider reported a second quarter net loss of $178.8 million, or $3.36 a share, 10 cents better than analyst consensus.
Second quarter revenues rose to $89.7 million, almost entirely from PCS services. PCS revenus were up 32 percent sequentially and up 121 percent year-over-year. Omnipoint increased its total subscriber base to 594,000 in the second quarter as it saw its highest net subscriber growth ever.
Average revenue per subscriber increased to $49, up from $45 in the first quarter, as average minutes of use rose, said George Schmitt, president of Omnipoint Communications Services.>