The Successful Investor Hotline – Friday, June 25, 2010

Article Excerpt

PLEASE NOTE: Our next Hotline will go out on Friday, July 9, 2010. GENNUM CORP., $6.60, Toronto symbol GND, earned $4.1 million, or $0.12 a share (all amounts except share price in U.S. dollars) in the three months ended May 31, 2010. That’s a big improvement over the $1.1 million, or $0.03 a share, it lost a year earlier. Gennum makes chips and other electronic equipment that lets television broadcasters store, edit and transfer video signals without losing picture quality. It also makes chips that improve the flow of data inside computer networks. Rising sales were the main reason for the earnings gain: Gennum’s sales jumped 63.4% in the latest quarter, to $31.7 million from $19.4 million. The company mainly sells its products to television broadcasters, and the improving economy is giving these clients more money to spend on new equipment. New products are also fuelling Gennum’s sales. The company spent $8.8 million (or 27.8% of its sales) on research in the…