Paul Senior: Re: Reasons to like MRM.
I like that it is on the AMEX (seems that is a backwater for discovered companies. I like the description of the business; it seems high tech enough to my understanding.
"Merrimac is a leader in passive RF and microwave components for industry, government and science. Merrimac components are today found in applications as diverse as satellites, combat and commercial aircraft, cellular radio systems, magnetic resonance medical diagnostic instruments, personal communications systems (PCS) and wireless internet connectivity."
Their sales are growing.
Sales for 1995 $14,396,633
Sales for 1996 $14,152,970
Sales for 1997 $18,659,106
Sales for 1998 $16,500,000 (9 months)
They are proud of a new Multi-Mix device. I got one of their mailers. Our fighter planes used to have a 15 pound box to filter out transmissions; now it is this small stacked chip device that weights like 8 ounces or so. So this may be a winner for them.
"Multi-Mix™ Microtechnology, a proprietary 3-dimensional microwave packaging technology, has recently appeared in important electronics industry trade publication articles and is featured on the cover
of the November issue of Microwave Journal, a leading RF/Microwave industry publication. Customer response to our new products has been extremely positive."
Oh, yes, they make money. But the satellite business is not so good lately. This is the fly in the ointment now:
"The Company entered the fourth quarter of 1998 with a backlog of $6.4 million, a decrease of $3.7 million or 37% from the same time last year. Major satellite and defense customers continued to defer purchases as a result of delays in certain programs. Management of the
Company believes that many of the satellite constellation programs that have been delayed may resume and translate into orders during the remainder of 1998 and continue positively into 1999."
Still there is a lot positive about the company. I'm in for a small position.
Geoff |
