Analyst Seth Potter says first-quarter results beat his estimates and backlog rose 3% sequentially to $413 million. He notes the first quarter includes seven new multimedia messaging clients, a short messaging service contract with Vodafone Japan, the deployment of an instant-messaging solution with Verizon Wireless, and a deal with NTT DoCoMo.
Potter says the company guided second-quarter revenue up sequentially to $227 million, and forecast 5 cents EPS. It raised the 16 cents fiscal 2005 (Jan) EPS guidance to 22 cents. He sees the company gaining more traction with Fun Dial product and InSight platform.
Potter upped the 18 cents fiscal 2005 EPS estimate to 27 cents, and upped the 37 cents fiscal 2006 estimate to 42 cents. He keeps his buy rating and the $26 target.