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AuthenTec, Inc. (AUTH) Receives “Strong Buy” Rating

AuthenTec, Inc. stock was upgraded from “Outperform” to “Strong Buy” by Raymond James Financial on Thursday (June 12th). The announcement fueled a rapid appreciation of 12.3 percent for the day.

AuthenTec itself has been growing by leaps and bounds, seeing a 67 percent revenue increase in the first quarter of 2008. In a recent conference call held to discuss the quarter ended March 31st, the company expressed the belief that 2008 revenues will only continue to grow. It is estimated that earnings for the second quarter will total more than $17.2 million, as a result of large-volume shipments of the company’s “AES 2810″ PC fingerprint-authentication product. It has also been reported that Intel’s Montevina laptops will come equipped with the AES 2810 sensors, to begin shipping in the second half of 2008.

In addition, AuthenTec has announced its intent to step up research and development efforts in a play for an increased market share. CEO Scott Moody noted: “Last year we shipped 13M sensors, but that’s part of a 1B unit market opportunity, so we still have a relatively large part of the total available market in front of us.”

With all of these developments, and more on the way, one can easily imagine why a respected financial services firm like Raymond James Financial has given AuthenTec, Inc. its stamp of approval, and a “Strong Buy” rating.

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