Applied Signal 2nd-qtr profit more than doubled

SUNNYVALE, Calif. - Applied Signal Technology Inc. said Tuesday its profit more than doubled in the fiscal second quarter as demand for its intelligence, surveillance and reconnaissance products grew.

Applied Signal said it earned $4.1 million, or 31 cents per share, compared with $2 million, or 16 cents per share, in the second quarter of 2008. Its revenue rose 18 percent to $53.5 million from $45.3 million.

The results exceeded Wall Street estimates. Thomson Reuters says analysts expected a profit of 20 cents per share and $49 million in revenue for the quarter ended May 1.

Applied Signal said its profit from product sales increased, as did its royalty revenue from licensing intellectual property. It also reduced its stock-based compensation expense. During the second quarter of 2008, Applied Signal recorded a charge of 6 cents per share from inventory write-downs and accounts receivable reserves.

The company said it received $56.5 million in new orders during the quarter, up 17 percent from a year ago.

In aftermarket trading, its shares rose $2.59, or 11.8 percent, to $24.58 from $21.99.

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