xG Technology Inc (NASDAQ:XGTI) investors have a smile on their faces Thursday morning, after the company announced preliminary record revenue results for the second quarter 2017 that exceed analyst expectations. xG Technology shares are up nearly 20% to $1.88, as of this writing.
xG expects to report record revenue for the second quarter 2017 in the range of $14.1 million and $14.5 million. This is record revenues for two successive quarters since closing the Vislink acquisition in Q1 2017.
George Schmitt, CEO and Chairman of the Board of xG Technology, said, “We are pleased to release our preliminary revenue results in response to investor inquiries. During Q2 2017, we continued to generate positive momentum in our businesses, as displayed by our achieving record quarterly revenue that exceeded both internal and external forecasts. We have successfully completed the integration of key business functions of our Vislink and IMT brands, and are increasing sales traction in both our traditional and new markets. We expect the momentum to continue into the third quarter and beyond. We look forward to sharing more details shortly when we announce our full results.”
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.”
On the ratings front, Roth Capital analyst William Gibson reiterated a Buy rating on XGTI, with a price target of $3.50, in a report issued on May 18. The current price target implies an upside of 123% from current levels. According to TipRanks.com, Gibson has a yearly average loss of 9.4%, a 41% success rate, and is ranked #4334 out of 4600 analysts.
xG Technology, Inc. engages in the development of patented wireless communications and spectrum sharing technologies. It operates through the following segments: Broadcast, Sports and Entertainment, and Government/Surveillance. The Broadcast segment includes a line of margin receiver products including DR3, crx6, and CIRAS. The Sport and Entertainment segment offers microLite, available in both licensed and unlicensed frequency bands. The Government/Surveillance segment sells IMT, MiniMobile Commander and Mobile Commander.