AM Communications is a leading provider of plant, headend, and hub management solutions to the broadband industry. The company prides themselves on not just being a provider of products but of value. AM's solutions provide network operators with greater control over their network's performance levels and reliability, giving them a competitive edge.
Being listed on the OTC BB would lead most investors to believe AMCM was a start-up, however they have actually been in business since 1974. In fact, AM has over 400,000 network transponders deployed worldwide, more than 400 broadband data communications and HFC networks are monitored using solutions from AM, over 300,000 plant miles are supported with products and expertise from AM, and their systems have been deployed and supported in 23 countries across 5 continents. Start-up? I think not.
Knowing the company has been around for 25 years and has only amassed a market capitalization of $33.7 million does not exactly make it a prime target of the investment community either, however, AM is rather compelling. The company has an investment partnership with Network Systems & Technologies (NeST) and companies such as HP, IBM, and Lucent have contributed to this company's growth.
Even more important is the fact that AM Communications has now reported two strait profitable quarters, after being in the red for two years. Last quarter, the first fiscal quarter of 2001 for AMCM, the company reported that its revenues increased 83% over prior year first quarter fiscal 2000 levels. Furthermore they also reported net income of $200,000 compared to a loss of $559,000 in the prior year first quarter. Jay Hassan, Chairman, AM Communications Chairmen, commented in the earnings release, "We are very pleased with our second consecutive quarter of profitability. Our operating model is starting to show the results we were anticipating as a result of the major restructuring efforts we have been undertaking over the past several quarters. … Our gross profit is up given the lower manufacturing costs structure resulting from the NeSTronix outsourcing arrangement announced in January, and overall, we have a much more efficient engineering development team." Simply, it appears AMCM are clicking on all cylinders.
Finally, all things are looking good for this small company. They continue to improve on their products and adapt with a changing market. Furthermore their backlog has grown to unmatched levels in their long history. Simply, trading at only a buck with a market capitalization of only $33.7 million, AM Communications has a lot of upside especially if their results continue to improve. |
