Morgan Stanley (MS: chart), brokerage giant, said that its mortgage business boosted company’s quarterly results. At the end of the quarter, warehouse lending commitments to sub prime lenders totaled $5.2 billion, of which $2.3 billion was funded and fully collateralized, he said in a conference call with analysts. The largest component of this was to New Century. Morgan Stanely''s current funded balance with New Century is $2.5 billion.

WSI Industries (WSCI: chart), maker of parts for the avionics and defense industries, said that its second-quarter net earnings increased to $155,000, or 6 cents per share compared with $69,000, or 3 cents per share, in the year-ago period. Revenue climbed to $4.44 million versus $3.57 million in the same period a year earlier.

U.S. Auto Parts Network (PRTS: chart) reported a fourth-quarter net loss of $20,000, or breakeven per share, compared with net income of $2.06 million, or 16 cents per share, in the year-ago period. Revenue, more than doubled, reached $36.8 million from $15.7 million in the prior-year period. The company forecast first-quarter results in a range of a 2 cent-loss to breakeven on revenue of $39 million to $41 million, and forecast 2007 earnings of 5 cents to 17 cents on revenue of $170 million to $185 million.

Telestone Technologies Corp. (TSTC: chart), which sells wireless network services and communications gear in China, shares surged 17.4% after it reported strong fourth-quarter profit and sales. The company reported net income of $1.6 million, or 19 cents per share, compared with $1.4 million, or 17 per share, a year ago. Sales jumped to $7.4 million versus $5.5 million in the year-ago period.

AAR Corp. (AIR: chart), aerospace supplier and maintenance provider, said that its fiscal third-quarter profit surged 68%, driven by increased revenue, outsourcing and better industry conditions. Quarterly net income rose to $15.3 million, or 36 cents per share, compared with $9.1 million, or 24 cents per share, in the prior year. Revenue grew to $271 million, up 21% from $223.4 million in the previous year. The quarter''s results included $16.5 million from the sale of two aircraft at book value.