Tustin-based Cherokee International Corp., a maker of power supplies and other electronics, upped its fourth-quarter outlook on Wednesday.
The company said it expects revenue growth in the mid-to-high teens percentage from the third quarter. Cherokee previously said it expected revenue growth in the mid-teens percentage.
For the third quarter, Cherokee had sales of $26 million.
“We continue to see strength in our server and storage markets along with higher levels of demand from our telecom accounts in Europe,” said Jeffery M. Frank, Cherokee’s chief executive.
The company saw order delays in the second and third quarters. The slowdown resulted in lower sales and losses,and calls for change from an investor and an analyst.
In July, New York-based investment fund Steel Partners, which owns about 11% of Cherokee, said it could seek to buy more shares and bring changes in governance, ownership, operations or even short sell or hedge the company’s shares.
One analyst, Michael Walker of Credit Suisse First Boston in New York, earlier said a sale could be the best option for Cherokee as it lost business from its top customer, Nortel Networks Corp.
Wednesday’s better outlook cheered investors, with Cherokee’s shares rising about 8% in afterhours trading. The company counts a market value of about $80 million.
