Ortel Posts Better-Than-Expected Earnings

Ortel Corp. shares surged 27% after the company reported higher-than-expected earnings and said demand for its communications gear remains strong. Ortel stock jumped $4.375 to $20.50 on the Nasdaq. The Alhambra-based company said net income in its fiscal second quarter increased to $2.1 million, or 17 cents a share, from $1.6 million, or 13 cents, a year ago. Ortel’s results were above expectations of 15 cents a share. Ortel said the company is looking for additional manufacturing capacity for its communications equipment business. Ortel also sells equipment used in so-called personal communications services systems similar to cellular telephone networks, which are being constructed at a rapid clip in the U.S. and abroad.