Symmetricom, Inc.

Symmetricom, Inc. (SYMM - Snapshot Report), the provider of time and frequency products, recently reaffirmed its 2009 forecast as it expects a seasonal uptick in revenue in the second half of fiscal 2009. The company has surprised on estimates 2 out of the last 4 quarters. SYMM is trading at 12x forward earnings.

Company Description

Symmetricom designs and manufactures precise time and frequency products in more than 90 countries around the world.

The company has two segments: Telecom Solutions Division and Timing, Test and Measurement Division. Telecom Solutions provides communications companies with IP video monitoring tools to provide high quality video experiences for their customers over the network.

Timing, Test and Measurement provides government, aerospace and broadcast customers with Time & Frequency instrumentation solutions such as GPS receivers, rubidium, cesium and hydrogen maser clocks that delivery atomic frequency references designed for ultra-precise timing and measurement.

SYMM Beat Wall Street Estimates in the Second Quarter by 66.67%

On Feb 4, Symmetricom reported second-quarter 2009 earnings that surprised on estimates by 2 cents a share. Net income rose to $2.7 million from $0.9 million. Earnings per share was 5 cents. The analyst expected 3 cents. Revenue fell 1% to $48.2 million from $48.8 million in the second-quarter of 2008.

The two segments had split results on the quarter. Telecom Solutions saw revenue fall 11% to $27.3 million from $30.5 million in the year ago period. While Timing, Test and Measurement gained 14% to $21 million from $18.3 million.

The company continues to see traction in its new product areas of cable, video Quality of Experience and PackeTime IEEE 1588. Symmetricom also expects revenue in the second half of the year to move higher, reflecting the usual seasonal uptick in the business.

Third Quarter and Full Year 2009 Outlook

For the third quarter of 2009, Symmetricom forecast EPS in the range of 7 cents to 12 cents per share. Full year 2009 revenue is now expected between $220 million and $230 million. Earnings per share is expected in the range of 35 cents to 41 cents.

Estimates Rise

Given the company's recent guidance, estimates have moved higher for the third-quarter 2009 and the full year. Third quarter estimates rose 2 cents to 7 cents per share, the lower end of the guidance range, in the last 30 days.

Full-year 2009 estimates rose to 29 cents from 25 cents, which is under the forecasted range.

Value Fundamentals

Symmetricom is a Zacks #1 Rank (strong buy). It's trading with a forward P/E of 12.13 and a price-to-book of 0.79.