With the markets rallying on Wednesday, there were a number of big movers.
Global Traffic Network (GNET) jumped 20% after it agreed to be bought out for $14 a share. The company announced that it has entered into a definitive merger agreement to be acquired by an affiliate of GTCR, a leading private equity firm. Under the terms of the agreement, Global stockholders will receive $14.00 in cash for each share of Global's common stock, which represents approximately a 20.0% premium over the closing price on Tuesday, August 2 and a 22.7% premium based on the 60-day volume weighted average price of $11.41. The acquisition of Global will be completed through a cash tender offer for all outstanding shares of Global's common stock that is expected to commence shortly. The transaction is not subject to any financing condition. The transaction is expected to be completed by the fourth quarter of 2011.
Cambrex (CBM) rallied 29% on Wednesday after the company released strong Q2 results. Sales were $67.5 million, 17.6% higher than the second quarter of 2010. The increase is primarily due to higher sales of certain larger custom manufacturing products and higher volumes of generic APIs. Income from continuing operations for the second quarter of 2011 was $4.8 million or $0.16 per share compared to $3.7 million or $0.12 per share in the second quarter of 2010. Analysts expected EPS of $0.13 on revenues of $62.1 million. The company continues to expect that sales for 2011, excluding the impact of foreign currency, will increase between 3% and 7% versus 2010, and that full year 2011 EBITDA will be between $43 and $49 million.
STAAR Surgical (STAA) jumped 27% after Q2 results came in better than expected. Revenue for the quarter grew by 19% or $2.6 million over the second quarter of 2010 to $16.3 million, fueled by a 51% mix of Visian ICL sales. Sales of Visian ICLs increased 41%, setting another quarterly record with $8.3 million in sales. The increasingly higher mix of Visian ICLs pushed gross margin up 320 basis points from second quarter of 2010 to 66.8%. Net income totaled $862,000, or $0.02 per share, compared with a net loss of $1.6 million, or $0.05 per share, in the second quarter of 2010. Analysts expected EPS of $0.01.
The CEO added:
Our successful execution has bolstered our confidence in the outlook, and as a result we are raising three of four key metric targets for fiscal 2011. We continue to expect double-digit growth in revenue, but have increased our target for ICL sales growth from 25% to 30%. We expect continued expansion of our gross margin and now anticipate it will reach 66.5% for the full year. Finally, we believe that we will be profitable in all four quarters of the year, up from our previously stated goal of three.
Silicon Image (SIMG) rose 24% after the company’s Q2 EPS beat analysts’ estimates. Revenue for the second quarter was $53.6 million, compared to $49.0 million for the first quarter of 2011 and $44.6 million for the second quarter of 2010, a 20.2% increase year over year. Non-GAAP net income for the second quarter of 2011 was $4.2 million, or $0.05 per diluted share vs. $0.03 analyst estimate. Per CEO Camillo Martino:
Our positive second quarter results were driven by the acceleration in mobile revenue from our MHL enabled products and better than expected revenue contributions from our IP business. Mobile products now make up a significant part of our revenue stream as we continue to reposition the company to have a more diversified product portfolio.
Nature's Sunshine Products (NATR) closed 23% higher after the company was able to grow its EPS 300% y/y. Net sales were $91.8 million, compared with $87.1 million in the same quarter a year ago, an increase of 5.4%. Basic and diluted net income per share from continuing operations was $0.36 compared with earnings per share of $0.09, for the same quarter a year ago.