Nighthawk Systems Inc. (OTCBB: NIHK) provided guidance today on rosy 3rd quarter earnings today that saw revenues improve on the $899,000 logged during Q2 and increase nearly 55% over Q3 '06.

Investors embraced the news with open arms as the stock traded up over 11% to .1140 on volume exceeding 5,000,000 shares. With its traditional business making record quarterly growth seem somewhat commonplace recently, adding on the high potential IPTV set-top box biz provides a new level of hope for the company bringing annual revenues into the double digit million range.

For the near to mid-term, the IPTV business may prove to be the icing on the cake for NIHK. With management stating that revenues for the first nine months of 2007 already exceed those of calendar year 2006, I'd say things were chugging along just fine prior to the recent acquisition.

CEO Doug Saathoff states in today's release that the IPTV biz could possibly accelerate near-term revenue growth rates by a multiple of two. If that's the case, the market may have awoken to some extent today and started pricing that potential into shares. Just a thought.

Labels: Nighthawk, Nighthawk Systems, Nighthawk Systems Inc., NIHK, NIHK.ob