Shares of Santa Ana-based STEC Inc. rose after the company announced a $28 million government contract. STEC is a leading global provider of Solid State technologies and solutions for corporate and industrial uses

Soon after the announcement investors sent shares up almost 14 percent at the close of New York trading on a recent market value of about $1.3 billion. STEC has partnered with a leading defense systems contractor to supply its MACH8 Solid State Drives (SSD) for the U.S. military. Reportedly, the 12-month long contract starts in the third quarter of 2009.

“We are proud to have been selected to provide our solid state drives for use in this military initiative,” said Manouch Moshayedi, Chairman and Chief Executive Officer on STEC, Inc. “This contract marks the first major military win for our MACH8 line of SSDs. More significantly this contract win demonstrates that our SSD technologies are adaptable and appropriate for a broad range of industries,” he further added.

STEC enjoys a rare position in the technology industry. Its shares have quadrupled since the start of the year. For the three months through June, the company expects to report profits of $14 million to $16 million on sales of $82 million to $84 million, while Wall Street analysts, on an average, are expecting profits of $16 million on sales of $83 million.

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