xG Technology Inc (NASDAQ:XGTI)
xG Technology Inc (NASDAQ:XGTI) shares are up almost 20% on the news that it expects to report record revenue for the second quarter 2017 in the range of $14.1 million and $14.5 million. Since closing the Vislink acquisition in Q1 2017, xG Technology has recorded record revenues for two successive quarters.
Roger Branton, CFO and co-founder of xG Technology, said, “xG expects to end second quarter 2017 with approximately $4.6 million in cash, and continues to work on reducing non-essential costs towards our goal of being cash flow positive for the year. We anticipate that we will report positive EBITDA (earnings before interest, taxes, depreciation and amortization) and net income for the second quarter 2017.”
Record revenues will be very welcome by xG Technology Inc (NASDAQ:XGTI) shareholders. XGTI has lost over 83% or the year, but is up 16.3% YTD. Adjusted for dilution effects, XGTI briefly traded over $100 during 2015.
xG Technology’s portfolio of brands includes Integrated Microwave Technologies (IMT), Vislink, and xMax. Together they provide wireless video solutions to broadcast, law enforcement, and defense markets. Additionally, they cater to private mobile broadband networks for use in challenging environments.
Earlier this month, xG Technology Inc (NASDAQ:XGTI) announced that its Vislink business has received an order with an approximate value of $300,000 from a leading sports broadcast organization in the Middle East region for wireless video systems. IMT reportedly is a pioneer in advanced digital microwave systems and is a trusted supplier to broadcast, sports and entertainment, and MAG (Military, Aerospace & Government) markets.
Only one investment analyst follows xG Technology Inc (NASDAQ:XGTI). They rate the shares as a “Strong Buy” with a price target of $3.50.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.