RuggedCom is still a buy

Article Excerpt

RUGGEDCOM INC. $13.36 (Toronto symbol RCM; SI Rating: Speculative) (1-888-264-0006; www.ruggedcom.com; Shares outstanding: 12.1 million; Market cap: $162.2 million; No dividends paid) makes computer-networking equipment that is used in harsh environments. In the three months ended March 31, 2010, RuggedCom’s sales rose 11.3%, to $19.4 million from $17.4 million. Despite the higher sales, the company’s earnings fell 67.8%, to $1.1 million, or $0.09 a share, from $3.4 million, or $0.29 a share, a year earlier. However, one-time costs were the main reason for the drop. These expenses included costs to integrate WiNetworks (which it bought in September 2009), a stronger Canadian dollar (which lowered the value of RuggedCom’s foreign sales), and certain research and marketing expenses. RuggedCom is still a buy for aggressive investors. investors…