Wwe will begin tracking Phazar due to strong commentary in its financial press release this morning:
- Revenues of $2,536,304 for the first quarter ended September 30, 2010 increased 36% compared to the prior year recast first quarter of $1,864,411, reflecting a significant upturn in both the commercial products and traditional governmental segments of our business.
- The Company earned a profit of $252,703 or $.11 per share for the first quarter, compared to net loss of $285,606 or $.12 per share, in last year's recast fiscal first quarter.
Commenting on the quarter, Garland P. Asher, Chairman and CEO, said, “On several occasions over recent quarters, I’ve observed that the gross margin improvement we were working diligently to achieve and the strict expense control would hopefully be reflected in improved profitably once revenue levels returned to acceptable levels. That scenario unfolded in textbook fashion in our first quarter. Sales were up by 36%, led by a more than doubling of commercial sales of DAS antennas to the cell phone carriers. But our traditional governmental customer base also showed substantial recovery and revenue growth. With sales gains of that magnitude combined with the above mentioned gross margin expansion, the Company was able to show the best quarterly earnings in more than two years.”
Additionally Mr. Asher stated, “Also encouraging as we go forward, we were able to add to our backlog. The backlog of orders was $3,263,000 at September 30, 2010, 12% ahead of the $2,908,000 at our May 31, 2010 year-end and up 59% from September 30, 2009. Incoming orders for the three month period totaled $3,298,468, versus $2,447,530 for the comparable period last year.”
In closing Mr. Asher remarked, “I have been too chastened by the economic events of the last two years and its effects on PHAZAR CORP to hazard a specific projection of results going forward. Having said that, when I see the explosive growth in smart phones and other wireless devices and the resulting taxing of available bandwidth in virtually all of the major metropolitan areas, I am encouraged. By not retreating from our robust R&D program during the downturn, we have developed the most extensive family of DAS (Distributed Antenna Systems) right when the industry needs them.”
GeoTeam® Note:
We have had some success investing in ANTP in the past, but the success was often short lived. The stock is over valued at current prices, but if the current trends continues this could change quickly. Even the though the stock is up
50.0% in the pre market, we may take a
short-term trading position @ $4.59, partly due to the stock's tiny share float.
