Analogic Corporation (NASDAQ: ALOG) designs and manufactures medical and security imaging processing systems, primarily for original equipment manufacturers. Its devices are used in such products as magnetic resonance imagers, ultrasound transducers, checked luggage scanners and explosives detection systems. Major customers include L-3 Communications (NYSE: LLL), Philips (NYSE: PHG) and General Electric (NYSE: GE).

The company pleased investors last week, when it reported fiscal Q2 EPS of 54 cents and revenues of $99.4 million. Analysts had been looking for 53 cents and $95.9 million. Management also agreed to buy MRI parts maker Copley Controls for $68.8 million. Analogic said the acquisition would expand product offerings and add business from Asia. This year alone, the move was expected to gain over $85 million in revenue. Needham subsequently upgraded the shares from "hold" to "buy".

Analogic Corporation (NASDAQ: ALOG) designs and manufactures medical and security imaging processing systems, primarily for original equipment manufacturers. Its devices are used in such products as magnetic resonance imagers, ultrasound transducers, checked luggage scanners and explosives detection systems. Major customers include L-3 Communications (NYSE: LLL), Philips (NYSE: PHG) and General Electric (NYSE: GE).

The company pleased investors last week, when it reported fiscal Q1 EPS of 53 cents and revenues of $94.2 million. Analysts had been expecting 40 cents and $87.4 million. ALOG shares popped through moving average resistance on the news and then passed into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.