Earlier this month, SPRD stock shares spiked to prices well above those from the past three months “due to the continuing strong demand throughout the quarter for low-cost smartphones,” as quoted by CEO Leo Li, in addition to optimistic revenue guidance reports for Q2 according to other SPRD officials. It predicts at most $270-278 million in revenue (a Q1 / Q2 increase of about 42.9% to 47.1%) which is significantly higher than its previous guidance reports which were around $220-$228 million.
Though SPRD previously operated in the TD-SCDMA Chinese air-interface market, it is now making new ventures into the W-CMDA, an alternative 3G air-interface network. SPRD estimates 800 million units in the W-CMDA network by 2014 and nearly 1 billion units by 2015 due to growth from other newly emerging markets, ensuring plenty of potential gain in this networking avenue.
SPRD’s prices rose nearly $2.00 from yesterday within a matter of minutes with today’s top price at $26.53 taking its place as the high for the week. So far today’s growth has been well-stabilized and relatively high.
SPRD’s optimistic estimates on Q2 revenue, outreach into new markets, stable gross margins, and investments in future technologies give it a bullish outlook for investors and is sure to succeed with these propitious signifiers.