Shares of Lattice Inc. (OTC: LTTC), a provider of advanced information and communications technology solutions to the government and commercial markets, are soaring in today’s trading.
At last check, the penny stock of LTTC was trading 61.11% higher at $0.145, with volume up from daily average of 9,317 to 4.22 million.
LTTC shares are soaring despite there being no recent news or development related to the company. The rally could be due to some stock promotion activity.
Back in June, Lattice announced the U.S. Air Force awarded the company’s government services division a contract. LTTC’s government services division was awarded a Small Business Innovative Research (SBIR) project for IED (improvised explosive devices) detection. The 18-month contract is worth nearly $750,000.
CEO Paul Burgess noted that the counter-IED technologies market, which according to Homeland Security Research Corp. is estimated to exceed $23 billion, is likely to expand significantly as greater number of sensor classes and sensors are added to the system. Burgess believes that the contract will provide LTTC with a strong entry point into this large market segment.
Lattice reported its most recent quarterly results (Q1) back in May. LTTC reported positive EBIDTA and strong communications sales for the first quarter.
LTTC’s EBITDA for the quarter was $263,619, compared to $69,209 reported for the same period last year. Revenue for the quarter was $3.395 million, compared to $3.269 million reported for the same period last year. Net income for the quarter was $28,760, compared to a loss of $522,838 reported for the same period last year.
The improvement in the company’s financial results was mainly due to significant gains in the growing Communications Division. LTTC’s Communications Division posted revenue of $2.08 million for the quarter, an increase of 106% over the same period last year. The increase was, however, partially offset by a decline in revenue in LTTC’s Government Services Division.
Burgess said that the substantial increase in communications revenue reflected higher call volume from LTTC’s installed base of correctional facilities and an increased number of facilities using the company’s proprietary Nexus system.