Clean Diesel Technologies Inc forecast third-quarter revenue above Wall Street expectations, helped by a 50 percent jump in sales at its heavy duty diesel systems unit (HDD), sending the emission control systems maker's shares up 33 percent.
The company expects third-quarter revenue to jump by more than a third to about $14.7 million, versus analysts' estimates of $14.6 million, according to Thomson Reuters I/B/E/S.
The HDD unit benefited partly from strong sales to the material handling and mining sectors, Clean Diesel said in a statement.
The Ventura, California-based company, which is valued at $21.28 million, also entered into an agreement with Lincoln Park Capital Fund LLC, under which it may sell up to $10 million of its common stock over 30 months.
Shares of the company jumped to $3.94 in morning trading on Nasdaq.