Hal,
Well, over the weekend Uncle Sam chose the 2 finalists in
the $219 billion sweepstakes to develop and manufacture the
next generation fighter plane/light bomber. By giving the Boeing
and Lockheed Martin $1.1 billion each to develop the prototype
planes prior to making the final decision in 2001, the federal
government has. I think, finally started that part of the process
which could benefit companies like Ampex.
In this case, Ampex has its DST mass storage products and
its DIS/DCRsi instrumentation products. These are what AXC had to say about its instrumentation products in its latest 10Q:
"..... Ampex DIS instrumentation recorders allow users to record instrumentation data on DST tape cartridges, so that the data can be used in a computer environment as well as in an instrumentation environment. Ampex DCRsi instrumentation recorders are designed for demanding aeronautical applications such as commercial and military flight testing, as well as other applications involving comparable data-gathering challenges in extreme environments."
"....The Company expects that sales of its data storage and
instrumentation products, which represented approximately 76% of total net sales for the third quarter of 1996, will continue to account for the majority of net sales for current product categories over the next several years....."
"....Mass Data Storage and Instrumentation Products. Sales of mass
data storage and instrumentation products increased to $18.0 million in the third quarter of 1996 from $16.6 million in the third quarter of 1995 (an increase of approximately 8.8%), and to $53.2 million in the first nine months of 1996 from $48.4 million in the first nine months of 1995 (an increase of approximately 9.8%). Sales of 19 millimeter data storage products (including DIS instrumentation versions of DST products) more than doubled in the three and nine month periods ended September 30, 1996. These increases were partially offset by declines in sales of DCRsi instrumentation recorders...."
The extra capacity generated by the use of double density tape
should enhance the appeal of AXC's DST-based DCRsi/DIS
recorders which are already known for its speed and reliability.
Still, Ampex is competing against big and diversified players like
Tektronix and it's going to have rely on more than its past reputation
(used in the Blackbird spy planes, some satellite programs, part of the
7x7 series of commercial planes, the B2 bomber[?]) to get its
fair share of the data recorder/storage portion of what could be the
last major plane program for the next 25 years.
Gus
Notes:
1) When Ampex 'sold' its traditional tape business to Quantegy last
year it retained part of its digital tape manufacturing facility in Redwood City.
2) Some people have already pointed out that the sale of
AXC's larger Colorado Springs manufacturing facility was cancelled
and replaced by an offer to lease a portion of the property, ;eaving
room for future expansion.
Keepered Media is the one drawing all the attention now, but there
is the promise of the 810/812 and the market for data recorders
just got bigger. There is also a patent portfolio that remains relatively
untapped from a litigation and marketing point of view. Surprisingly
good prospects for a speculative stock in one's portfolio, don't you
think?
Gus |
