The share value of RuggedCom Inc. (RUGGF.pk, or OTC: RUGGF.pk) which has been confined in the same zone for over a week on balance sheet concerns, even after posting record Q4 revenues Wednesday, has finally blossomed to a 30-day high powered by its recent purchase of WiNetworks Inc., pioneer of mobile WiMAX systems. Investors are likely to have been especially charmed by the idea of transforming WiMAX products into new RuggedMAX product line, giving the Canada-based developer of communications networking solutions an edge in broadband wireless networks. “We believe the combination of the WiNetworks product portfolio and engineering talent puts us in an immediate leading position in the WiMAX field and complements our wireless LAN switches and cellular routers, giving us a complete wireless product portfolio”, Elik Jaeger, vice-president of RuggedWIRELESS™ stressed a point.
The tie-up of the two companies requires RuggedCom to pay a total of approximately $14 million. This includes $9 million for all the shares of WiNetworks, in addition to taking over its debt obligations that are calculated at $5 million.
Investors had appeared unmoved on September 16, when RuggedCom declared that its fiscal fourth quarter revenues zoomed past 52 percent to a historical $17.4 million, while net profit soared nearly 50 percent to $3.4 million ($0.28 per share). The company’s stock which has beefed up by more than 100 percent so far this year was bid at $21.65 afterhours Thursday, up 9.6 percent from the previous closing price.
Reference:
http://www.ruggedcom.com/
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