And the expected 10 million increase in revenue (as they announced to be about 74M versus the 64 M in the last quarter) is probably going to take the EPS to about 40 cents. Given that the analyst estimates are 24 cents right now, that should give a big boost to the stock when the announcement comes on July 30.
I believe, this is a greatly undervalued stock right now.
Increased sales in Qs 1&2 means the volume discounts kick in yet earlier.
Management has stated explicitly (QMX presentation) that much of the cash will be used to make acquisitions.
Key patents are expiring soon, and uptake of the follow-on technologies has been disappointingly slow.
It isn't clear that contract manufacture of products for the China market will give more effective protection of the contained intellectual property than patent licensing would have given (once you teach the IP thieves how to do it, they steal--that's what thieves do).
Management has shown decreasing faith in their goal of $100MM of optical revenue in 2011.
At least one of The Wireless Case or The DRAM Case figures to be appealed to SCOTUS. (I can't leave out the bullish scuttlebut: a final victory in either of these would mean an award comparable to the enterprise value of TSRA)
I'm bullish, but in times of pessimism, risks seem bigger.
Their EPS for the first six months then would be about 0.67. Project that into the whole year as 1.34, which puts the fair value of the stock with a 4% base interest rate to $33.5 per share. If they made no money the rest of the second half, the fair value of this stock would be 0.67/0.04= 16.75.