Shares of Tustin-based Cherokee International Corp. got a boost Tuesday when the company upped its outlook for the end of the year, citing new design wins and a big backlog of orders.
The stock rose nearly 8% in afterhours trading, with a recent market value of about $82 million.
Cherokee, which makes power supply gear for medical devices, cell phone and computer networks, said it’s looking for a big rebound in the second half of the year.
“With our current backlog of $47.6 million, and over 45 designs coming out of our engineering teams, we anticipate a stronger second half of 2007,” said Chief Executive Jeffrey Frank.
Investors shrugged off Cherokee’s second quarter results, also announced Tuesday.
Sales were down 23% to about $30 million, in line with analysts’ estimates of about $31 million.
The company swung to a loss of about $2 million. A year ago, Cherokee saw about $400,000 in profits. Analysts were expecting a loss of nearly $1 million.
Cherokee got into red ink during the first quarter of the year, when it saw skyrocketing operating costs, partly due to the construction of a manufacturing site in China.
