Targeted Strategies for Today's Evolving Markets

MissionIR Blog

Tumbleweed Communications Corp. (TMWD) Rolls Forward With Improved Guidance; Stock Takes a Jump

Shares of Tumbleweed Communications Corp. (TMWD) spiked nearly 11% to $1.45 after the company announced today that it raised first-quarter revenue guidance to between $14.8 million and $15.4 million, up from between $13 million and $14.5 million. The Redwood City, CA-based company said it now expects a loss of 2 to 3 cents per share, down from its previous forecast of 4 to 6 cents loss per share. The Street expects an average loss of 2 cents per share on $14.1 million revenue. The company, which provides secure online communications services, also anticipates cash to reach $27.3 million at quarter ending March 31, 2008, an increase of $1 million from $26.3 million at December 31, 2007.

Tumbleweed credits improved operations for the revised expectations. “During the first quarter, Tumbleweed continued to execute its plans to transform the company, and our preliminary results exceeded our guidance,” Chief Executive James P. Scullion said. “We had a strong contribution from the licensing of our intellectual property, increased our backlog, which includes deferred revenue, and added to our cash position. We also continued to increase the percentage of our non-renewal commercial orders that went through our channel partners, a key indicator of progress in transforming our sales distribution from a direct to an indirect model. Lastly, our bottom line benefited from the operational changes we implemented in fourth quarter of 2007.”

In addition to improved operations, Tumbleweed is boosting global scope. The company, which was founded in 1993, has been expanding partnerships, reaching into Australia, India and Malaysia thanks to strategic agreements with several new distribution partners in the Asia-Pacific region. Last month Tumbleweed also announced a distribution agreement in the UK and Ireland with IT distributor DNS Arrow.

Let us hear your thoughts below:

This entry was posted in Small Cap News. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *