xG Technology Inc (NASDAQ:XGTI) announced today that its Vislink business has received an order valued at approximately $1.5 million for microwave communications equipment from a leading medical device manufacturer. The Vislink communications equipment included in the order will form an integral part of an advanced medical device application.
Radio frequency (RF) and microwave technologies are seeing increasing use in healthcare and biosensing applications, and medical devices based on these technologies are playing a growing role in the prevention, diagnosis and treatment of diseases. Among the medical applications enabled and supported by RF and microwave technologies are imaging, testing, scanning and rehabilitation.
“This order demonstrates the appeal of IMT and Vislink’s communications solutions in sectors that go beyond the traditional core verticals in which they have been a market leader, namely, broadcast & media and law enforcement, public safety and defense,” said George Schmitt, Executive Chairman and CEO of xG Technology. “As evidenced by this order, there are substantial opportunities available in scientific, medical, research and other industrial applications where the performance and reliability of IMT and Vislink equipment can deliver impressive benefits.”
Mr. Schmitt continued, “There are also opportunities in these markets that could benefit from the inclusion of xG’s xMax broadband network solution, which is a natural complement to telemedicine and other health initiatives, particularly in remote areas.”
Shares of XG Technology are up 12.50% to $2.34 in pre-market trading Wednesday. XGTI has a 1-year high of $7.30 and a 1-year low of $0.32. The stock’s 50-day moving average is $1.79 and its 200-day moving average is $1.69.
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 July 14. The current price target represents a potential upside of 68% from where the stock is currently trading. According to TipRanks.com, Gibson has a yearly average loss of 8.1%, a 45% success rate, and is ranked #4295 out of 4601 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.