TIK - Insider Buying - September 2007
This company (defensive technologies for aircraft and naval vessels) is poised near its 52-week high. Improving financials and some strategic accumulation over the last couple months have resulted in about a 25% gain in share price.
From 1Q FY07 Results:
For the first quarter ended June 30, 2007, total sales increased 75% to $3,081,052 as compared to the same quarter in the prior year, and the net loss decreased from $271,154 to $83,374 for the same period. This increase in sales is primarily attributed to the following:
In fiscal year 2007, the Company was awarded the AN/ARM-206 Intermediate Level TACAN Test Set (ITATS) contract for $4.4 million for testing, documentation, and the delivery of prototypes. Since this contract has a long duration, revenues under this contract have been recognized on a percentage-of-completion basis. For the first three months of fiscal year 2008, revenues under this contract were approximately $736,000. However, the gross profit of $71K for this contract in the quarter is significantly less than the Company's historical gross profit due to use of an engineering subcontractor, and the competitiveness of the bidding process.
The shipment of T-47N test sets to the Royal Australian Air Force (through the Company's distributor) for approximately $600,000.
Interesting to note (when assessing whether is likely to move higher) that insider (Robert Rice) purchased 3900 shares in September 2007.
Not a huge purchase, but significant given the small float and expected future earnings which will result when the company delivers on current contracts.
From 1Q FY07 Results:
Increase in shipments of the TR-220 Multi-Function test set.
Over the last two calendar years the Company has won competitive awards for two major contracts, CRAFT and ITATS, from the U.S. Navy. These contracts include multi-year production deliveries, commencing late in calendar year 2008, and have an aggregate value of approximately $30 million. The products under these contracts represent cutting edge technology, and should provide Tel with a competitive advantage for years to come. |
