Dallas, Texas 09/16/2013 (Financialstrend) – Zhone Technologies Inc (NASDAQ:ZHNE) shares are trading at $3.51 which translates to 14.7% upward surge as of close of business on September 13 from its previous day close. In the past 60 days, Zhone Technology share prices have shot up an astounding 290%. Currently the shares are trading at close to its 52 weeks high price of $3.66 and way above its 52 weeks high low of $0.40. At current valuations, the company market capitalization stands at $110 million with total outstanding shares of 31.4 million. The company has also not paid out any dividends in the last two year.
What is the company into?
Zhone Technologies designs and manufactures networks equipment used by telecommunications, wireless and cable operator companies from across the globe. Zohne specializes in solutions using which network service operators can seamlessly migrate from older circuit-based networks to packet-based networks.
What is fuelling the rally?
The abrupt rise in share price and it maintain steady at those high evaluations can be attributed to the July 17 second quarter result announcement from the company. The revenue in its second quarter had gone up to $30 million in comparison to $28.4 million in first quarter of 2013.Net income has shot up almost 5 times from the previous quarter. In 2Q13, its net revenue was $1.1 million in comparison to $0.2 million in 1Q13. As per a quote from Mory Ejabat, Zhone’s chief executive officer the company has “for the third quarter in a row generated positive net income and cash flow from operations further strengthening their financial position”
In an added vote of confidence, on August 6, company announced receiving notification from NASDAQ indicating ZHNE is fully compliant with minimum bid requirement of NASDAQ.
The rally over the past two months can be attributed to a solid