Stolen-vehicle recovery technology company LoJack (NASDAQ:LOJN) was one of this morning's big risers, its shares climbing more than 20% (on volume many times its recent average, according to our data provider) by lunchtime to set a new 52-week high. Powering the increase was the company's third-quarter earnings release, which revealed strong revenue, gross margin, and net income growth.

LoJack's main offering is the LoJack System. (The company pays Motorola (NYSE:MOT) to manufacture its devices.) Purchased primarily through new and used-car dealers in the U.S., customers get a device attached to their vehicles. The company, meanwhile, leases its tracking equipment to local and state law enforcement agencies at a nominal rate. When the device is activated -- when a car goes missing, naturally -- it transmits signals that law enforcement officials can use to track and locate the vehicle. When the vehicle is found, the device is deactivated.

The company is looking to grow in a few different ways. For example, earlier this year, it launched a new product, LoJack Early Warning, which alerts customers if an unauthorized user is operating their vehicle. In the meantime, the "classic" LoJack System is being updated. (The company chooses markets for the service based on careful qualitative analysis.) Aside from those efforts, LoJack is continually looking to sell to commercial vehicle operators in the U.S., as well as licensing its technology overseas.

While LoJack didn't provide a cash flow statement in its earnings release, the income statement and balance sheet combined to show a company heading in the right direction so far this year. Cost controls are working, its cash account has grown, and payables have fallen. The company is now showing the ability to demonstrate free cash flow and net income growth even with the domestic auto market slower than management would like.

LoJack is currently trading at about 20 times trailing-12-month net income. At a quick glance, that seems rich given the current auto sales environment. However, considering its recent results, strong market position, and extensive room for domestic and international expansion, continued execution in product development and marketing should help LoJack reward long-term investors.

Dave Marino-Nachison can be reached at