Wind River's
In the third quarter, the company increased revenues by 13% to $67.6 million, while net income increased from $0.03 per share, or $2.3 million, to $0.06 per share, or $5.7 million. Cash flow from operations was $16.3 million, giving the company a total $156 million in the bank. For fiscal 2006, Wind River expects revenue to range from $268 million to $270 million, with earnings per share between $0.27 and $0.28.
Wind River's technology has enjoyed significant support -- after all, NASA uses its products -- but the company has been fairly weak in sales and marketing. That's changed in the past year, as Wind River has formed alliances with partners like Intel
Digital devices are growing increasingly complex, leading manufacturers to turn to outside specialists for software rather than trying to code their own. Wind River CEO Ken Klein thinks this trend represents a significant shift in the market, although he thinks it's still in its early stages -- "a marathon, not a sprint," he said. With its strong technology, top customer base, and solid financials, Wind River is well-positioned to benefit from this market move.
Fool contributor Tom Taulli does not own shares mentioned in this article.