CSTL

[terabemo]

CSTL IS MOVING UP AHEAD OF EARNINGS..............COULD BE A ROCKECT AFTER EARNINGS....

http://stockcharts.com/gallery/?cstl


CSTL, with only 1.8m shares in the float and $1.6/share cash and ZERO debt, will report 2Q 2006 earnings this week.

CSTL's CEO Mr. MacDonald issued the following bullish update a few weeks ago:

http://biz.yahoo.com/bw/060505/20060505005140.html?.v=1

Recent insider buying is also encouraging:

http://www.secform4.com/insider/showhistory.php?cik=cstl

On April 26, 2006, VSTL reported its 12th consecutive profitable quarter. CSTL's 1Q 2006 was the best quarter since 2000. Following sequential revenue increases the prior three quarters.


1 Q 2006 EARNINGS SUMMARY:

-- 1Q 2006 Revenues $2.99M vs. $2.59M...up 15%

-- 1Q 2006 Net income 5c/share vs. 3c/share in 1Q 2005.

-- $7.14M cash or $1.6/share...Up $640K From 1Q 2005.

-- ZERO DEBT


*** CSTL HIGHLIGHTS:

- Float: 1.8M shares

- Outstanding shares: 4M

- Market cap $13M

- P/S of 1.15

- P/E less than 15

REGARDING 1Q 2006, Mr.  MACDONALD SAID"

"Our first quarter of 2006 was a clear reflection of Castelle's successful expansion into the enterprise market with FaxPress Premier(TM)," ...... "FaxPress Premier has been a significant contributor in helping Castelle capture additional market share, and has been one of the key drivers behind our revenue and earnings growth. Also in the first quarter, Castelle introduced a more robust digital fax server, FaxPress Enterprise(TM), to support the increasing demand for installations in digital environments. FaxPress(TM), FaxPress Premier and FaxPress Enterprise have been well received by new and existing customers worldwide, and we look forward to expanding our share of the fax server market."

Castelle Continues to Strengthen its Balance Sheet

Castelle's balance sheet as of March 31, 2006 reported cash and cash equivalents of $7.14 million, up 5.6% from December 31, 2005. This translates to nearly $1.59 per fully diluted share. Cash has not been at this level since the second quarter of 1997. Castelle remains free of long-term debt.

Strategic Partnerships to Support New Growth Initiatives

Castelle has recently taken several significant steps to expand its product offerings and establish new solution partnerships. In addition to the introduction of FaxPress Enterprise in March, Castelle announced that FaxPress Premier has been approved by Fujitsu Limited as an "Interstage® Enabled" product in Japan. In April, Castelle announced the integration of its fax servers with Ricoh's new GlobalScan 2.0 software to provide a complete fax solution for all electronic and paper-based documents.



ABOUT CSTL:

Castelle (Nasdaq:CSTL - News), a market leader in "all-in-one" network fax solutions for business and enterprise, develops office automation systems that allow organizations to easily implement faxing over local area networks and the Internet. Castelle's network fax servers, FaxPress(TM), FaxPress Premier(TM), and FaxPress Enterprise(TM) provide a simple way to integrate fax with email, desktop and back-end applications. Castelle products are designed to be easy to use and maintain, and provide an economical way for companies to share resources over the network. Castelle was founded in 1987 and is headquartered in Morgan Hill, California. Its products are available through a worldwide network of distributors, resellers, and online retailers. Visit Castelle online at www.castelle.com.

[terabemo]

My guess is that 2006 will be  a great year for CSTL. The company has made many good moves lately to get into high margin niche markets.

[snowcat]

wOW -low float is right - it trades about 6k shs a day.  It could either explode, implode or just lay around waiting.................

You never know with earnings..........

[terabemo]

I believe it will explode this time. CSTL has been making the right moves to gain market share internationally...specially in Asia and South America.

The company keeps piling up more cash every quarter. CSTL is an ideal acquisition candidate because of its high quality products and super-strong balance sheet. Acquisition or not, CSTL is easily a $6 stock if it can demonstrate that it will increase revenues above $3M/quarter.

[terabemo]

CSTL REPORTS RECORD RESULTS...HUGE UPSIDE...

[snowcat]

wow! YOU WERE RIGHT!!!!  GOOD CALL!  BIG VOLUME!

I will pay more attention in the future.  You know what you are talking about!

[terabemo]

I expect CSTL to continue to go up from here. The 18c drop in the last minute of trading to end at $3.2 was an obvious manipulation that does not reflect the value of this true GEM.

My target is $5++ after money mangers and institutions start loading up at these prices.

CSTL's chart looks great..

http://stockcharts.com/gallery/?CSTL

[terabemo]

Profit-taking has slowed down significantly since yesterday. I expect institutions and money managers to start buying nice chunks of this stock in the future.

The only knock with CSTL was its flat revenues despite almost two dozen quarters of consistent profitability.

With  its new initiatives entering the digital fax market and big agreements with Ricoh and Fujitsu integrating CSTL's hardware and software in these giants' products, CSTL is at the bottom of a nice ride up from here.

[terabemo]

CSTL $2.28 STARTING TO MOVE UP AFTER PROFIT-TAKING....

http://stockcharts.com/gallery/?CSTL

In the past, the only knock with CSTL was its flat revenues despite almost two dozen quarters of consistent profitability.

With its new initiatives entering the digital fax market and big agreements with Ricoh and Fujitsu (integrating CSTL's hardware and software in these giants' products), CSTL is at the bottom of a nice ride up from here.

REGARDING GROWTH....THIS IS A STATEMENT FROM LAST WEEK'S EARNINGS RELEASE:

Strategic Partnerships to Support New Growth Initiatives

Castelle has recently taken several significant steps to expand its product offerings and establish new solution partnerships. In addition to the introduction of FaxPress Enterprise in March, Castelle announced that FaxPress Premier has been approved by Fujitsu Limited as an "Interstage® Enabled" product in Japan. In April, Castelle announced the integration of its fax servers with Ricoh's new GlobalScan 2.0 software to provide a complete fax solution for all electronic and paper-based documents.

A STRONG BALANCE SHEET DOES NOT HURT..

Castelle Continues to Strengthen its Balance Sheet

Castelle's balance sheet as of March 31, 2006 reported cash and cash equivalents of $7.14 million, up 5.6% from December 31, 2005. This translates to nearly $1.59 per fully diluted share. Cash has not been at this level since the second quarter of 1997. Castelle remains free of long-term debt.


4/26/06 EARNINGS SUMMARY:

-- 1Q 2006 Revenues $2.99M vs. $2.59M...up 15%

-- 1Q 2006 Net income 5c/share vs. 3c/share in 1Q 2005.

-- $7.14M cash or $1.6/share...Up $640K From 1Q 2005.

-- ZERO DEBT


*** CSTL HIGHLIGHTS:

- Float: 1.8M shares

- Outstanding shares: 4M

- Market cap $13M

- P/S of 1.15

- P/E less than 15


EARNINGS RELEASE LINK..

http://biz.yahoo.com/bw/060426/20060426005451.html?.v=1

[terabemo]

KEEP AN EYE ON CSTL THE NEXT FEW DAYS.....I SEE A LOT OF UPSIDE HERE.

[terabemo]

keep an eye on CSTL next week. Coulb be a rocket if earnings are strong like I suspect it will.

[terabemo]

CSTL IS MOVING AHEAD OF EARNINGS......THIS ONE COULD BECOME A BIG GAINER THIS WEEK.

EXCLUDING ITS STRONG CASH POSITION, CSTL IS TRADING AT A P/E OF ABOUT 8!!!

[terabemo]

CSTL is moving up ahead of earnings this week...the company does not announce an earnings date.

This solid gem is so undervalued that any positive earnings will make it explode big time

[terabemo]

Looks like some investors are loading up before earnings...most likely tomorrow during trading hours..


http://stockcharts.com/gallery/?cstl

[memeomemeo]

CSTL IS STARTING TO MOVE UP AHEAD OF EARNINGS IN FEBRuARY...............

Castelle (Nasdaq: CSTL) recently announced several major OEM agreements with well known companies like Sharp, Fujitsu, and Ricoh. CSTL is now the 4th largest fax server supplier in the world. Two tears ago it was ranked 9th. With 2/share cash, ZERO debt, and heavy insider buying CSTL is a real bargain under $5.


*** CSTL HIGHLIGHTS:

- FLOAT: 1.6M shares

- Outstanding shares: 4M

- Market cap: $13M

- P/S ratio: 0.9

- Heavy insider buying

- $2/share CASH

- ZERO DEBT


Strategic Partnerships to Support New Growth Initiatives

Last month CSTL gained over 30% after it announced that its FaxPress(TM) family of network fax servers provide a scan in, fax out solution for Sharp Open Systems Architecture (Sharp OSA)-enabled multifunction devices.

Integrating Castelle's FaxPress fax server with a Sharp multifunction device provides copier, scanner and multifunction users with immediate access to an intuitive, user-friendly fax interface.

Castelle also announced that FaxPress Premier has been approved by Fujitsu Limited as an "Interstage® Enabled" product in Japan. CSTL has also announced the integration of its fax servers with Ricoh's new GlobalScan 2.0 software to provide a complete fax solution for all electronic and paper-based documents.

On December 5, 2006, CSTL announced that it continues to move up within the top ten listing of fax server suppliers according to the recently issued 'Computer-Based Fax Markets, 2005-2010' report by independent research firm, Davidson Consulting. The Davidson report also states that the global fax server market is expected to see increased growth over the next five years.

The report states, "In this year's fax server supplier structure, for the second consecutive year, Castelle has made another major move up in the rankings; climbing from seventh all the way to fourth." In the previous year's overall ranking of fax server suppliers, Castelle was seventh in the global market, having moved up from tenth place. Castelle also made progress in North America, moving up to third place from sixth over the past two years.

According to the report, the fax server market is expected to grow from $270 million in 2005 to $400 million by 2010, which is an annual growth rate of 8.2%. Much of the growth is attributed to compliance, sales of fax servers with multi-function printers (MFPs), the transition to IP faxing, and the centralization of fax operations to lower operating costs. Corporations are also turning to business process automation, which is making fax a mission-critical application and increasing the need for redundant solutions.


ABOUT CSTL:

Castelle (Nasdaq:CSTL - News), a market leader in "all-in-one" network fax solutions for business and enterprise, develops office automation systems that allow organizations to easily implement faxing over local area networks and the Internet. Castelle's network fax servers, FaxPress(TM), FaxPress Premier(TM), and FaxPress Enterprise(TM) provide a simple way to integrate fax with email, desktop and back-end applications. Castelle products are designed to be easy to use and maintain, and provide an economical way for companies to share resources over the network. Castelle was founded in 1987 and is headquartered in Morgan Hill, California. Its products are available through a worldwide network of distributors, resellers, and online retailers. Visit Castelle online at www.castelle.com.

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