(STEC) - Gross profit margin was 24.8% for the second quarter of 2006, compared to 19.3% in the first quarter of 2006

SimpleTech, Inc. has met or exceeded analyst estimates in five out of the past six quarters. Year-over-year growth was 150% in the latest quarter. Two analysts have raised their estiamates for both this year and next. Over the past 60 days, this year's estimates have increased 13.8%, while next year's numbers have jumped almost 29% to 45 cents per share. Full Analysis SimpleTech, Inc. (STEC) engages in the design, development, manufacture, and marketing of memory and storage products used in consumer electronics, computing, defense and aerospace systems, networking and communications, and other original equipment manufacturers applications in the United States. It offers flash products, including compactflash memory cards, digital and multimediacard flash memory cards, miniSD and reduced-size multimedia cards, USB flash drives, ATA flash PC cards, solid state drives, and flash disk modules that are used in various applications, including industrial, networking, and mobile consumer electronic applications. The company reported strong growth across the board for the second quarter of this year. Revenue for the second quarter of 2006 was $79.5 million, an increase of 21% from $65.5 million for the first quarter of 2006 and an increase of 13% from $70.3 million for the second quarter of 2005. earnings per share were 10 cents compared to two cents for the first quarter 2006 and four cents for the second quarter of 2005. Analysts expected nine cents. Gross profit margin was 24.8% for the second quarter of 2006, compared to 19.3% in the first quarter of 2006 and 18.2% for the second quarter of 2005. Revenue growth in the second quarter of 2006 resulted from stronger than expected demand in every major product category; in particular, sales of customized Flash memory to OEMs. Increased gross profit margin and diluted earnings per share for the second quarter of 2006 were impacted positively primarily due to a product mix shift toward higher-margin OEM Flash products. ``I am very pleased with our results for the second quarter of 2006 and even more with the strategic direction of the company at this time,'' said Manouch Moshayedi, SimpleTech's chairman and CEO. ``As I mentioned in a recent announcement, one of our strategic initiatives during the last two years was to invest significantly in research and development, and the sales and marketing infrastructure for customized OEM Flash solutions." The company has met or exceeded analyst estimates in five out of the past six quarters. Year-over-year growth was 150% in the latest quarter. Two analysts have raised their estiamates for both this year and next. Over the past 60 days, this year's estimates have increased 13.8%, while next year's numbers have jumped almost 29% to 45 cents per share. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home