Phoenix Technologies (PTEC), reported exceptional earnings results today, demonstrating that the company’s financial turnaround is essentially complete. Management can now focus on growing the company both via new internal initiatives, and acquisitions.

Yesterday, Phoenix Technologies (PTEC) reported Q1 results which significantly exceeded expectations and provided solid evidence that the company’s turnaround is in on track. With revenue increasing by 17% over the prior quarter and the company’s loss reduced, it seems clear that a bottom has already been reached in the business and results will only continue to improve as the year progresses.

If you’ve been following Phoenix Technologies (PTEC), one of our top software turnaround picks, we’re sure you noticed that yesterday Ramius Capital offered to purchase PTEC for $5.25 per share, a 15% premium to our purchase price for the shares back in November 2006.

Last week, the major activist shareholders in Phoenix Technologies (PTEC), filed an amended 13-D with the SEC. We noticed several interesting tidbits in the filing, which support our continued optimism for this software turnaround play.

As the PC industry has matured and prices have dramatically declined, the component pricing environment has been fierce. Phoenix, the world’s leading supplier of the BIOS firmware, which is essentially a PC component, has felt the effects of this pricing pressure acutely.

Even though investors may have to suffer thru several more quarters of losses, we think that Phoenix Technologies (PTEC), the leading supplier of BIOS software for PC’s, is an attractive turnaround investment opportunity at current prices.