Analyst Rich Valera says the company delivered strong results in the first quarter it merged with LGP Allgon, meeting or exceeding his top-line and bottom-line estimates. He says the company gave a confident second-half outlook. He's encouraged by the gross margin performance and the outlook, which should enable profitability by the third quarter, ramping toward high single-digit operating margins in late 2005.
He expects some skepticism concerning his upbeat second-half guidance, but says the company has already incorporated weakness from AT&T Wireless/Cingular into its numbers. He upped the $8 target to $11. He trimmed the 2 cents 2004 EPS estimate to 1 cent, and upped the 27 cents 2005 EPS estimate to 33 cents.