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Zhone Technologies Rises 35 Percent After Positive Earnings

Shares of Zhone Technogies (NASDAQ: ZHNE) are up 35 percent after the company reported better than expected earnings Wednesday after the closing bell. In its release, the company reported revenue of $30 million compared to $28.4 million in the previous quarter and $30.8 million during the second quarter of 2012.

EPS was $0.03 compared to $0.01 in the last quarter and $0.07 the year prior.

“We’re pleased to announce that we achieved or exceeded our revenue, gross margin and expense targets for the quarter thereby generating positive free cash flow from operations,” stated Mory Ejabat, Zhone’s chief executive officer. “For the third quarter in a row, we have generated positive net income and cash flow from operations, further strengthening our financial position. We continue to focus on profitability as our number one financial objective and expect to improve that profitability in the second half of 2013.”

The $35 million company is trading at $1.53 at seven times normal volume. The stock is up 77 percent in the past six months.

Zhone Technologies, Inc. designs, develops, manufactures, and sells communications network equipment for telecommunications, wireless, and cable operators worldwide.

[stock-tools exchange="NASDAQ" symbol="ZHNE" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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