We recently reiterated our Neutral rating on Align Technology, Inc. (ALGN) with a target price of $18.50 based on a P/E of approximately 34.3x our fiscal 2010 EPS estimate of 54 cents.   Align reported strong financial results for the fourth quarter and full fiscal 2009. In the fourth quarter, earnings per share was 15 cents, surpassing the Zacks Consensus Estimate of 9 cents and the year-ago earnings of 7 cents. In fiscal 2009, earnings per share were 41 cents, compared to 32 cents, a year-ago.   Total revenues in the fourth quarter increased 16.9% year over year to $86.6 million. Growth was driven by higher sales across both the North American Orthodontists and North American GP Dentists segments fueled by strong case shipments. Total number of cases shipped in the reported quarter were 61,060, an increase of 8.0% sequentially and 16.0% year over year.   Align witnessed ...

Atheros Communications, Inc. (ATHR) yesterday completed the acquisition of Intellon Corporation. California-based Atheros Communications is a leader in the designing of chipsets used in WLAN devices. On Dec. 11, 2009, Intellon stockholders approved the merger agreement. Intellon's stock is no longer listed on the NASDAQ exchange. Atheros paid $113.6 million in cash and issued approximately 5 million shares in relation to the merger. Based on the Intellon stockholder elections, those stockholders of Intellon who elected to receive all cash or who made no election received $7.30 in cash, those stockholders who elected to receive all Atheros common stock received $3.33 in cash and approximately 0.145 shares of Atheros common stock, and those stockholders who elected a mix of cash and stock received $3.63 in cash and approximately 0.134 shares of Atheros common stock. Intellon designs, develops and markets integrated circuits (ICs) ...

Atheros Communications (ATHR) recently reported revenues of $156.6 million for the third quarter, up 13% year over year and up 40% sequentially and surpassed management’s guidance of revenues around $145 million – $150 million. The strong growth in revenues came from personal computers and wireless handsets.

Gross margin came in at 48.4% compared to 47.4% in the prior quarter and 49.4% in the year-ago quarter. Operating margin came in at 19.4% compared to 10.8% in the previous quarter and 17.7% in the year-ago quarter. Net income almost quadrupled to $38.6 million in the reported quarter from $10.0 million in the year-ago quarter and a loss of $0.2 million in the previous quarter and due to growth in sales and orders. EPS of 46 cents easily beat the Zacks Consensus Estimate of 25 cents.

Management stated that the economic environment remained challenging but the strength of the company’s product cycles and increasing

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Cyclacel Pharmaceuticals, Inc.’s (CYCC) lead pipeline candidate, CYC202, is being developed for the treatment of non-small-cell lung cancer. However, CYC202, as well as other pipeline candidates, are still in early to mid-stage clinical development process and several years away from commercialization. As such, we maintain a Hold rating on the stock.

The company bolstered its oncology/hematology program with the acquisition of Align in October 2007. The acquisition provides Cyclacel with three marketed drugs and a revenue stream. Although we believe the development of CYC202 presents a significant commercial opportunity for the company, it is still several years away from reaching the market.

Upcoming catalysts in the coming months include the announcement of clinical results from the phase II study of sapacitabine in cutaneous T-cell lymphoma and the phase IIb APPRAISE trial for CYC202 (seliciclib). Positive data from one or more of these trials could provide a boost to the company s

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