ISYS

[BigSully1]

ER looked pretty good to me, unless I missed something. Must have been "sell the news" kind of like CALM did a month ago with the big black candle. Putting on watch for further study.
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Integral Systems Q1 results top Street view; ups '08 EPS outlook

Feb 4 (Reuters) - Integral Systems Inc (ISYS.O: Quote, Profile, Research) posted higher quarterly results that beat Wall Street view by a wide margin, helped by increases in all of its operating segments, and raised its earnings forecast for fiscal 2008.

The satellite systems provider reported a first-quarter net income of $7 million, or 75 cents a share, compared with $2.1 million, or 19 cents a share a year ago.

Excluding items, the company earned 42 cents a share for the quarter. Revenue rose 36 percent to $37.3 million.

Analysts on average expected the company to earn 19 cents a share, before items, on revenue of $27.5 million for the quarter, according to Reuters Estimates.

For 2008, Integral said it sees earnings of $1.48 to $1.50 a share, up from its earlier expectation of $1.38 to $1.40 a share. Analysts on average were expecting earnings of $1.39 a share.

The company said it expects operating income to be slightly higher in 2008 than its initial outlook due to higher demand for products and services, particularly with its air force and national programs. (Reporting by Sreerupa Mitra in Bangalore; Editing by Anupama Dwivedi)

[BigSully1]

update

[setravis]

Integral Systems Reports Strong Revenues on
Defense Despite Commercial Budget Push-Outs
Shares of Integral Systems, Inc. (ISYS) were up 11.70% following
Monday's earnings call in which the company reported Q2 revenues of
$44.85M, up 54.60% from last year and beating consensus by 50.10%.
Q2 EPS was $.44, up 131.58% from last year and beating consensus
by 131.58%. During the quarter, the company reported positive revenue
for the year reflected in all three business segments, and now says it
will exceed initial expectations for the year. However, while overall funding
is good on the government side, it is seeing some budget-related
push-outs on the commercial side. Gross margins were also affected
slightly on government programs that were accelerated upon customer
request, recorded as pass-through costs. As a result, some resources
were diverted to meet customer demand and some projects slipped.
In response to this, the company is using its internal recruiting team to
conduct an aggressive campaign to hire talented engineers. But despite
the challenges of meeting demand, the company has just completed its
mid-year forecast and expect to exceed initial forecasts due to contract
changes from RT logic product and services and backlog for remainder
of year. Revenues are now projected to exceed $150M for the year
and $1.90 EPS. SG&A costs are seen as flat for the year, as last year's
SEC and legal costs will not recur. No significant pricing pressures are
expected, and the competitive environment remains the same in the
government sector, with competition in the commercial sector slimming
down as budget push-outs in that space continue. Integral also reports
good pipeline visibility, as current contracts will extend beyond 2008
and into 2009, especially for GPS. However, GPS Phase B will not be
finalized and awarded until 2009, but according to the company, most
of the pipeline includes potential for active programs, budgeted primarily
for military, and identified as ECPs, which are in the current contract language
and will fall in timeframes when the Air Force decides to award
ECPs. Said CEO Alan Baldwin, "In the commercial world, we have number
of individual operators, so it's harder to pin down their budget, and
we see slips there related to programs. But in Q2 bookings, the number
of opportunities recorded 12 months ago are starting to be placed."