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SimpleTech Jumps on Outlook

Shares of Santa Ana-based SimpleTech Inc. soared 17% Tuesday after the company said surging demand would result in a higher second-quarter profit.

The memory products maker said it expects a profit of $4.1 million to $4.6 million in the quarter. That’s up from a previous forecast of $2.3 million.

The company also raised its revenue expectation to $78 million to $79 million for the second quarter, up from previous guidance of $67 million to $70 million.

SimpleTech said its profit margin in the quarter would be 24% to 25%, compared to an earlier forecast of 21%.

The company said it saw demand rise across all its memory products, but especially with flash memory (chip-based products for consumer electronics) for manufacturers.

SimpleTech said in a release that it’s been introducing new products and reaching new customers “in a variety of industries.”

The company, which has a market value of about $200 million, will release its second-quarter report Aug. 9.

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