Tel-Instrument Electronics (AMEX:TIK)
Some key financial data:
Current price: $3.55
EPS: -0.03
Shares Out: 2.19 M
Float: 1.1 M
Price/Book: 1.50
Curr Ratio: 3.19
LT Debt/Equity: 0.03
Total Debt/Equity: 0.05
Website: telinst.com
Here are some excerpts from the 10K letter to shareholders:
The good news is that, in March 2005, the Company won a competitive contract to provide the US Navy's next generation navigtion/communication flight line tester (CRAFT). This contract has production options totaling 750 units, which if exercised, would result in deliveries beginning in early fiscal year 2008. Also very encouraging, in August 2005, this contract was modified to include testing of the next generation of IFF, which should broaden the interest of the other armed forces in this state-of-the-art multi-function test set. The Company believes the CRAFT technology is a significant advance on current products in the marketplace and will form the basis for a new family of test instruments which will materially diversity and modernize our product line and could lead to significant additional sales. Tel is actively pursuing other major government contracts and is continuing its efforts to broaden its markets and products. Sales and operating results for the first six months of the 2006 fiscal year have improved, although near- to mid-term commercial and military orders have continued to be below expections.
Compared to last year's first quarter, sales increased from $2,812,800 to $3,150,978 (12%) and income before taxes decreased from $87,517 to $57,991 for the first three months of FY06.
Backlog, as of June 30, 2005, was approximately $6,300,000 as compared to about $2,600,000 one year earlier.
Avionics government sales increased 25% for the first quarter of FY06 to $2,373,035, as compared with $1,901,858 in the previous year. Export orders continue to be generated by our distributors in England, Italy, Spain, and Australia and the Company continues to pursue opportunities in overseas markets. As discussed above, the Company continues to explore new markets, both externally, through acquisition, and internally, through foreign sales and new products.
At June 30, 2005, the Company had positive working capital of $4,168,806 as compared to $4,047,116 at March 31, 2005. The Company's credit agreement with Bank of America remains at $1,750,000, against which there has been no takedown.
As previously reported, TIK began trading on the AMEX in February 2004 and, since then, the stock price has improved. However, management continues to feel it still does not reflect our true value. In response to this, the Board has, with our investment bankers, pursued several previously reported initiatives to increase shareholder value. Closing prices in the AMEX market (symbol: TIK) during the second quarter of calendar year 2005 ranged between $3.22 and $4.48 per share. |
