Zacks Industry Outlook Highlights: Brightpoint, Harris Corporation, Lightbridge and NMS Communications

Business Wire, Nov 21, 2005

CHICAGO -- Zacks.com releases its latest Industry Outlook. This report identifies the best stocks in the top-ranked industries. Featured in the latest report is the telecom equipment industry, with a focus on the following stocks: Brightpoint, Inc. (NASDAQ:CELL), Harris Corporation (NYSE:HRS), Lightbridge, Inc. (NASDAQ:LTBG) and NMS Communications (NASDAQ:NMSS). To read the complete Industry Outlook report and to see all of the top-ranked industries, visit http://at.zacks.com/?id=2177.

Here are details on the stocks featured in the latest Industry Outlook.

Brightpoint, Inc. (NASDAQ:CELL) recently reported third-quarter income from continuing operations of 30 cents on revenue of $545 million. The earnings result matched the consensus and also marked a significant year-over-year improvement. Revenue jumped 26% from the third quarter of 2004. Brightpoint experienced a 63% surge in wireless devices handled, which was primarily driven by an 85% growth in fee-based logistic services unit volumes and a 26% advance in distribution unit volumes.

Harris Corporation (NYSE:HRS) posted a solid fiscal first quarter last month and expressed its expectations for positive momentum from all for of its operating segments moving forward. Non-GAAP earnings per share for the quarter reached 47 cents, an almost 15% surprise from Wall Street expectations. In the year-earlier quarter, Harris reported 29 cents. Revenue advanced to $759.7 million from $669.4 million. The company also increased its non-GAAP fiscal 2006 earnings guidance to between $2-$2.10 per diluted share. Previously, it expected $1.80-$1.90.

Lightbridge, Inc. (NASDAQ:LTBG) stated that it delivered another solid performance in its third quarter and exceeded expectations in both its Authorize.Net and Telecom Decisioning businesses. Net income from continuing operations reached six cents in the quarter, compared to a year-ago loss. The result also marked a 100% positive earnings surprise over the consensus. Looking forward, Lightbridge plans to remain focused on growing its payment processing business, increasing overall productivity and maintaining a strong profit performance and balance sheet in order to deliver shareholder value.

NMS Communications (NASDAQ:NMSS) posted third quarter earnings of seven cents per share on total revenues of $30.3 million. The earnings result marked a solid improvement from two cents in third quarter 2004 and eclipsed the consensus by as much as 250%. Meanwhile, total revenues advanced 18% year-over-year from $25.7 million. The result also marked a 21% sequential improvement. Chairman and CEO Bob Schechter stated that this was a solid quarter as demand for its newer initiatives continued to build and its Platform Solutions business improved.

About Zacks Industry Outlook

These stocks featured above have a Zacks Rank of #1 ("Strong Buy") or #2 ("Buy") and a Zacks Equity Research rating of "Buy". The Zacks Rank is a quantitative indicator designed to cover periods of 1-3 months. Zacks Equity Research recommendations are based on both quantitative and qualitative factors and are intended to cover periods of 3-6 quarters.

For over 18 years, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank stocks have generated an average annual return of 33%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained 43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 143.5% annually ( 4.9% vs. 12%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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