Shares of Technical Communications Corp.
more than tripled on Tuesday, after the provider of secure communications systems for governments, military agencies and companies swung to a profit in its latest quarter from a loss a year ago. The Concord, Mass.-based company said late Monday it had net income of $1.03 million, or 56 cents a share, in its fourth quarter to Sept. 28, after a loss of $259,000, or 14 cents a share, in the year-earlier period. Revenue rose to $2.8 million from $1.1 million. FactSet analysts do not cover the stock, so there are no consensus numbers for the report. Chief Executive Carl Guild said in an earnings release that the return to profitability was driven by the delivery of several foreign and domestic contracts for the company’s DSP 9000/HSE 6000 radio encryption products. Those products are used by military and law enforcement. The company said in May it had received $2.7 million of orders for the system from military supplier ADS Inc., to support a foreign military sales contract between the U.S. government and an unnamed Middle Eastern government. The stock was being touted Tuesday by traders in a chatroom on Twitter using the @TraderEquity handle, likely boosting volume. The stock was last up about 393% in heavy volume. As much as 20.9 million shares had changed hands by early afternoon, compared with a daily average of about 9,900 in the last 65 days. The stock has gained 266% in 2019, while the S&P 500
has gained 25%.
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