Atlas Technology International Inc (OTCMKTS:ATLT) shares were up over 200% in a one-month period and over 300% over a one-year period, recently. Now, the stock’s strong performance could be attributed to the company’s expectation of its significant gains in third quarter of the 2017 fiscal year. Before we get into the reason for why ATLT could continue to build momentum, let’s take a look at what the company does.
Atlas Technology International is a leading designer and distributor of touch screen technologies and solutions to consumer electronic producers across the globe. That in mind, with the recent shift in technology, consumer electronic producers could potentially increase the demand for touch screens. According to the company, Atlas Technology’s touchscreen devices are incredibly durable and exceptionally responsive for a wide array of industries such as GPS, watches, point-of-sale (POS), hospitality, medical/healthcare IT, industrial, and consumer. Atlas´ products are proven in the toughest environments and are highly trusted.
Atlas Technology International Inc (OTCMKTS:ATLT) recently announced that it expects to report significant sequential and year-over-year gains for the third quarter of the 2017 fiscal year. That said, investors and traders are focused on these forecast because it could give clues about how the company may perform.
The company expects to report revenues in the third quarter of fiscal 2017 to be in the range between $1.0M to $1.2M, which would be a potential increase of a range between 30% and 56% on a sequential basis compared to revenues of approximately $770K in its second fiscal quarter ended December 31, 2016.
Additionally, Atlas Technologies expects it Q3 2017 gross margins to improve slightly towards approximately 29% due to the company’s expectation of continued gains in earnings, attributed primarily to an expanded client base, new international revenue channels, as well as overall economies of scale.
Moreover, Atlas Technologies’ net income is expected to increase sharply, increasing over 10-fold on a sequential basis to a range of between $90K and $100K. In the second quarter of the fiscal 2017 year, the Company posted a profit of $4.3K, compared with a net loss of $112K in the first quarter of the 2017 fiscal year..
According to Matthew Tsai, Chief Executive Officer of Atlas Technology International, Inc., “Our third quarter continues to be on the record pace set in the first half of our current fiscal year.”
Tsai added, “Demand for our existing and new touch screen product lines continue to increase faster than anticipated, which should enable us to book more revenues in just one quarter than the entire first half of fiscal 2017.”
Atlas CEO continued, “Our senior management team brings extensive executive and technical experience from the touchscreen technology industry, enabling a quick ramp-up of operations, a blue-chip client base and profitability.”
Tsai concluded “With touchscreen technology increasingly becoming somewhat of a commodity, our affordable pricing, intellectual property and innovative product construction continues to set us apart from our competitors. Our team is focusing on better, smarter materials, easier integrations into any device and achieving new technological breakthroughs. Our efforts benefit our clients directly by providing more dependable and flexible solutions in the design phase.
Now, the company only issued guidance for the company not too long ago, and it has not reported its third quarter 2017 financial results yet. That in mind, you might want to stay up to date on ATLT, as it could experience a high degree of volatility prior to its Q3 2017 financial results. You don’t need to read company filings to stay up to date on ATLT. All you have to do is enter your email address into the box below, and you’ll be on your way to receive our free newsletter, which would provide updates, if any, on ATLT.
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in ATLT stock, short or long.