I'll start it off with one that probably falls into the category of obscure. Those tend to be my favorites as of late.
6/24/98
Ceramic Process Systems
Symbol: CPSX
(508) 222-0614
P.O.C.: Grant C. Bennett
52 wk hi/lo: $1.50/.31
Shares authorized:15,000,000
Shares issued: 15,000,000
Shares outstanding: 8.71 M
Shares in the float: 1.4M
Current /share earnings: 0.22
P/E: 6.94
Year of incorporation: Boston 1984
Year of re-incorporation: Delaware 1987
Ceramic Process Systems manufacturers various metal matrix and ceramic heat management devices (heat sinks)that are used by the wireless communications, satellite communications, motor controller and other microelectronic markets. Products are manufactured by two proprietary process'. Quickset (trademark name) and Quickcast (trademark name) pressure infiltration process. The company currently holds 11 US Patents and has filed several International patents. The company currently enjoys licensing its technology to corporations who manufacture and sell products in other markets. In fiscal 1997, 91.5% of the Company's total revenue was derived from manufactured products, and 8.5% from licensing fees. This is up from 96%,4% in 1996 and 99%,1% in 1995.
Markets:
1) Wireless communications: A recent study by a market research firm (Taylor & Associatates) see PCS subscribers (Sprint PCS, Primeco, AT&T PCS, etc.) at 1.5 million by year end 1997 and growing to 12 million by 2000 (I am one of the 1.5M and the service is growing big time here in Dallas and is not hardly started yet in LA). The Company provides components for housing, interconnecting and thermal management of microelectronic devices to wireless communications infrastructure equipment manufacturers.
2) Satellite Communications: Satellites provide several advantages over earth-based facilities for many
telecommunications applications. Satellites enable high-speed communications service where there is
no earth-based alternative available which is often the case for military operations and for
communications services in developing countries. Another advantage is that the cost to provide services
via satellite does not increase with the distance between sending and receiving stations. The cost of
providing services via satellite can be less than the cost of installing copper or fiber optic networks.
Three major satellite networks that have been announced in recent years and are in various stages of
development and deployment are Iridium, Teledesic and GlobalStar. CPSX provides components for
housing, interconnecting and thermal management of microelectronic devices to
satellite subsystem and satellite manufacturers.
3) Motor Controllers: As the future hits with electric cars, variable speed drives will be required.
Currently, the costs for variable speed drives are decreasing as technology is increasing. Each year
millions of motor controllers are installed everywhere. With the price of variable speed drive versions
coming down, more and more need will be for controlling the heat on the motors, controls, etc.
provides components for housing, interconnecting and thermal management of microelectronic devices
to motor controller manufacturers.
Customers:
. In fiscal 1997, Motorola Corporation, Olin Aegis, and Texas Instruments accounted for 63%, 11%, and 10% of total revenues, respectively. In fiscal 1996, these same companies accounted for 56%, 16%, and 13% of total revenues. In fiscal 1997, 76% of the Company's total revenues were from commercial business, and 24% were from defense-related business.
Current Stock Price History
1996
hi/lo
1st qtr 7//16 x 5/32
2nd qtr 11/16 x 1/8
3rd qtr 11/16 x 3/8
4th qtr 5/8 x 5/16
1997
hi/lo
1st qtr « x 5/16
2nd qtr 7/8 x 11/32
3rd qtr 1 « x 5/8
4th qtr 2 5/8 x 1 3/8
Financials:
Last year is the first year CPSX broke out of the red and into the black in a big way. For the three months ended 3/28/98, total revenues increased 42% to $1.3 million. Net income totalled $385 thousand, up from $108 thousand. Since reporting except for 1993, the company was losing money. Per share losses were as follows: 1994: (.25), 1995 (.14), 1996 (.05), then as mentioned above 1997 .22. See a pattern here??
Cash on hand at December 27, 1997 totaled $561 thousand, an increase of $448 thousand from the 1996 year-end balance of $113 thousand.
Management:
President: Mr. Grant C. Bennett. President, Chief Executive Officer and Director of the Company since September, 1992.
Dr. H. Kent Bowen has served as a Professor at Harvard Business School since July, 1992. Prior to that time, he held the position of Ford Professor of Engineering at the Massachusetts Institute of Technology ('MIT') from 1981 to 1992. Dr. Bowen served as Co-Director of the Leaders for Manufacturing Program at MIT from 1991 through July, 1992. Dr. Bowen has been a Director of the Company since 1984 and served as Chairman of the Board of Directors of the Company from 1984 to August, 1988. Dr. Bowen is also a director of General Signal Corporation. Impressive to say the least.
Debt:
All of the debt for the company has been refinanced via issuance of stock options. With the current performance of the company, it would be hard IMHO to see any of them giving up and selling to recoup what they have into it. List of venture capital financiers is on the latest 10-K and read like a who's who of OTC-BB bankers.
Insider Buying/Selling:
Only Waco Partners has filed to sell 78,000 shares recently. Settled on 4/1/98
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