SYMM’s Sale Of QoE Business Positive, Says Cantor Fitzgerald
Analyst Edward Jackson of Cantor Fitzgerald maintains his "buy" rating on Symmetricom Inc (NASDAQ: SYMM). The target price for SYMM is set to $8.
Symmetricom has announced the sale of its Video Quality of Experience (QoE) product line to privately-held Cheetah Technologies for $2.3 million. “Symmetricom's previous management purchased the QoE business in January 2007 for $16.8 million in cash, thus its sale represents a failed attempt to diversify the company's revenue base,” the analyst says.
Cantor Fitzgerald adds, however, that it is pleased with the transaction since SYMM’s QoE business never met expectations and it was a drain on the company’s bottom line. “We believe, that there is the potential for a meaningful upgrade cycle in Symmetricom's installed base and that this potential cycle could enable the company to maintain revenue growth for several years,” the analyst adds.
