TeleCommunication Systems Looks Like a Buy

TeleCommunication Systems, Inc. (NASDAQ:TSYS) chart is currently looking great, check out the wedge pattern - it's at the bottom of it's channel right now, and should be heading back to the $10 - $11 range soon.

The company engages in the development and application of wireless data communications technology in the United States and internationally.

Here are some highlights from their recent Q1 earnings call:

-- Revenue was $70.5 million, an increase of 75% from $40.4 million in
the first quarter of 2008, and total funded and unfunded backlog at quarter
end was $415 million versus $225 million at March 31, 2008.

-- EBITDA (Earnings before Interest, Taxes, Depreciation and
Amortization, including non-cash stock-based compensation) for the quarter
was $11 million or $0.21 per diluted share, an increase of 31% from $8.4
million or $0.19 per diluted share in the same year-ago quarter (see
important discussion about the presentation of EBITDA below).

-- Pre-tax income was $8 million or $0.16 per diluted share, an increase
of 70% from $4.7 million or $0.11 per diluted share in the first quarter of
2008.

-- Net income was $4.9 million or $0.10 per diluted share (51 million
diluted shares), an increase of 7% from $4.6 million or $0.11 per diluted
share in the first quarter of 2008 (44 million diluted shares).

TSYS is a solid small-cap growth stock to add to your portfolio. Analysts are only estimating an increase in revenue from $260.02M in 2009 to $285.08M in 2010. With the looks of their backlog, they should be able to blow those estimates out of the water.

Just look at their history of beating estimates in 2008:

Earnings History Jun-08 Sep-08 Dec-08 Mar-09
EPS Est 0.09 0.08 0.11 0.14
EPS Actual 0.15 0.12 0.15 0.21
Difference 0.06 0.04 0.04 0.07
Surprise % 66.7% 50.0% 36.4% 50.0%
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Disclaimer: No positions in TSYS