Notes
AML Communications (the "Company" or "we") currently design, manufacture, and market radio frequency (RF) and microwave, low noise, medium and high power amplifiers and subsystems serving primarily the Defense Electronic Warfare Market. Our business is comprised of three reportable segments. AML Communications, Inc. (AML) designs, manufactures, and markets amplifiers and related products for the defense microwave. Our division Microwave Power, Inc. (MPI) designs, manufactures, and markets high power microwave amplifiers for the defense market. Our defense industry products are used primarily in electronic systems for tactical aircraft, ships, ground systems, and missile systems. These products are sold directly by us as well as through independent sales representatives. On April 11, 2007, we acquired a controlling interest of Mica-Tech, Inc. (Mica-Tech) and subsequently acquired the remaining interest on February 19, 2008. Our wholly owned subsidiary Mica-Tech designs, manufactures, and markets an intelligent communication system to provide Supervisory Control And Data Acquisition (SCADA) of the electric power grid. We had three reportable segments (AML), (MPI), and (Mica-Tech) for the six month periods ended September 30, 2008 and September 30, 2007." Our Mica-Tech segment designs and manufactures the UltraSatNet, an Intelligent Satellite Utility Communication Solution for the monitoring and control of power grid distribution. Following the acquisition in February 2008, the company has focused on the Demand Response market. Mica-TechÕs Demand Response Program is an intelligent energy management program that allows businesses to lower their energy costs and earn cash incentives. Mica-TechÕs customers realize savings on their energy costs and additionally earn cash by simply agreeing to reduce peak period electricity consumption a few times during the year to help stabilize the electric grid. Our customers are paid regardless of whether the reduction in peak electricity consumption is called for. To facilitate close contact with developments and to reduce operating costs, we have relocated the Mica-Tech operation to the AML Camarillo headquarters in May 2008.
"We cannot assure you that our competitors will not develop new technologies or enhancements to existing products or introduce new products that will offer superior price or performance features. We expect our competitors will offer new and existing products at prices necessary to gain or retain market share. Several of our competitors have substantial financial resources, which may enable them to withstand sustained price competition or a downturn in the pricing of their products in the future. Substantially all of our competitors have, and potential future competitors could have, substantially greater technical, marketing, distribution and other resources than we do and have, or could have, greater name recognition and market acceptance of their products and technologies.
22DEC08 - $0.45
"Three customers provided 41.6% and 35.7% of net revenue for the six months ended September 30, 2008 and 2007, respectively."The Company extends credit to its customers based upon its assessment of their credit worthiness and generally does not require collateral. Credit losses have not been significant.
"AML and MPI represented 77.7% and 14.5% of our 2008 net revenue, respectively. Mica-Tech designs, manufactures, and markets an intelligent communication system to provide Supervisory Control and Data Acquisition (SCADA) of the electric power grid. Mica-Tech represented 7.8% of our 2008 net revenue.
Market Cap (intraday): 5.20M
Enterprise Value (22-Dec-08): 5.50M
Price/Sales (ttm): 0.39
Price/Book (mrq): 0.40 (mostly tangible)
Enterprise Value/EBITDA (ttm): 3.066
Thoughts: It's cheap and interesting.
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