Mon, 18 Sep 2006 7:30:00 PDT
RIDGELAND, MS -- (MARKET WIRE) -- 09/18/2006 -- Electronic manufacturing service provider
Elecsys Corp (
ASY Provides EMS for LCD, Grows RMS from KS...HUH?
Elecsys Corp (
The BULLS Say...
Established EMS Strength; New RMS Growth. Since 2000, Elecsys has been in the growing electronic manufacturing service (EMS) market. To be in such a low margin market, ASY seems unaffected as a smaller manufacturer, and in the past year, it has diversified by entering the remote monitoring market. ASY has ramped up marketing for these wireless products (monitor corrosion in oil and gas pipelines) and expects near term growth in this market. ASY has exhibited double-digit top-line and bottom line growth over FY05 and continues to improve its gross and operating margins to 4x and 2x peer averages respectively. To contain new growth, ASY has built a new state of the art facility to house both subsidiaries. ASY looks to continue expanding its EMS business while looking for high margin home runs in the RMS marketplace.
The BEARS Say...
Tax Consequences and Y/Y Comps. The good news...ASY is growing profits. The bad news...They have to start paying taxes. ASY recognized its deferred tax asset in Q4 of last year and is now incurring tax expenses. These extraordinary benefits and new tax expenses will cloud Y/Y comparisons and likely confuse investor in the coming quarters.
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Knobias, Inc. (
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