Shares of Cogent Systems gained 7 percent on Friday, the day after projecting improved future performance despite disappointing second quarter earnings.

The Pasadena-based developer of automated fingerprint and palm print identification systems said after Thursday’s market close that net income fell 32 percent to $7.2 million, or 8 cents per share. Revenue was down 13 percent to $26 million. Gross margins remained solid at 64 percent.

Chief Executive Ming Hsieh said his company expects to see significant revenue growth in the second half of the year and into 2009, based on orders in the pipeline. In addition, several large government contracts are expected to be awarded this year for which Cogent is a contender.

“We believe we are on track for a strong 2008 and the return to year-over-year growth,” said Hsieh in a conference call with analysts, referring to the company’s struggles over the past few years.