) reported second-quarter earnings per share of 6 cents (on a GAAP basis). WR Hambrecht raised its $25 price target to $27 and reiterated a buy rating for the stock.
Analyst Reginal King says management's cost controls along with higher revenues contributed to the quarter's strong results and 60.3% gross margin. He says Comverse is well positioned to capitalize on accelerating growth of mobile data traffic and increase in global carrier spending on messaging and multimedia solutions. He says the absence of a big customer within its order backlog bolsters his view that visibility is improving and signals momentum in wireless carriers' demand for ROI enhanced services infrastructure and applications.
King increased his EPS estimates from 22 cents for fiscal year 2005 (January) to 27 cents, and from 50 cents for fiscal 2006 to 54 cents.