Stock picks: RuggedCom earnings soar in latest quarter

RuggedCom Inc., symbol RCM on Toronto, makes computer networking equipment that is used in harsh environments. The stock pick’s products include ethernet switches, network routers, wireless devices and software. RuggedCom’s products are designed to reliably operate under high levels of electromagnetic interference. They can also cope with wide variations in temperature and humidity, as well as vibration and exposure to dust. They also work while exposed to such things as corrosive gases and water. The stock pick’s revenue jumped 38.0% in the three months ended March 31, 2011, to $26.7 million from $20.6 million a year earlier. Sales to clients in the electric-power market jumped 65%, and now account for 71% of the stock pick’s total sales. Earnings rose 45.4% in the quarter, to $1.6 million, or $0.13 a share. A year earlier, it earned $1.1 million, or $0.09 a share. The company booked a record $29.9 million of orders in the quarter, up 64% from a year earlier. That included orders from 112 new business clients. We updated our buy/sell/hold advice on RuggedCom in our May 27, 2011 Stock Pickers Digest hotline, which you can immediately view when you take a 1-month free trial to Stock Pickers Digest. Click here to get started right away. (Note: If you are a current Stock Pickers Digest subscriber, please click here to view Pat’s recommendation. Be sure to log in first.)

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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