A New Company On The NASDAQ

Today’s On the Radar report focuses on a company who is stepping up in the world.  They just up-listed their shares to the NASDAQ on June 27.  They’ve been growing like a weed, doubling in size over the last few quarters, and their products are in high demand right now.

Take a closer look at this exciting company…

 

QUICK FACTS

Ticker                                     ATNY

Industry                                  Semiconductors

Recent Price                           $7.10

Market Cap                             $348m

Shares Outstanding                 49 m

Average Volume                      N/A

Dividend Yield                         N/A

Website                                 http://www.apitech.com/

 

COMPANY DESCRIPTION

API Technologies (ATNY) is primarily a government contractor.  The company and their subsidiaries specialize in advanced electronic components and robotics.  They also design secure communication systems for the military and government agencies.

Earlier this year, they merged with another government contractor, SenDEC.  The merger allowed them to restructure their balance sheet and almost double the size of the company.

Then the company made another acquisition in June.  Clearly, management is looking to acquire companies to compliment their existing business.

 

FINANCIALS

Now, when you research API, you’ll see their fiscal year ends in May.  That means their next filing will include full year numbers… and with all the acquisitions they’ve made, this is an important report.

The key points are when you combine the companies, revenue nearly doubled, operating income is up almost 300% and their net income numbers flip from a small loss to a nice gain.

Of course the real challenge will be if the company can continue to improve on their performance numbers in the future.

The company recently completed a significant restructuring, establishing a $170 million term loan, and raising $31 million in a private placement.

ATNY hasn’t even been trading for a full month yet.  So we don’t have average volume numbers yet.  But the company does have some attractive valuation metrics.

 

KEY METRICS ANALYSIS

Trailing P/E                                       2.8x

Price / Sales                                     3.1x

Return on Assets                               N/A

Insider ownership                               78.4%

Short Ratio                                        N/A

Current Ratio                                     1.7x

Total Debt To Equity                           7.5x

 

RECENT EVENTS

This has been a big year for this newcomer to NASDAQ.

In January they merged with SenDEC, an electronics manufacturer catering to the defense industry.  API acquired all of SenDEC’s equity, including their manufacturing operations and approximately $30 million in cash.  They issued 22 million common shares of API.

The deal also made API big enough to attain a NASDAQ listing, which is big news for the company.  It opens up a whole new world of interested funds and institutions who might take a position in the company.

Then on June 1 of this year the company announced the acquisition of Spectrum Control, paying about $260 million to acquire the company.  Spectrum designs and manufactures secure communications for the defense and aerospace industry.

 

MANAGEMENT TEAM

Brian R Kahn – CEO

Bel Lazar – COO

John (Jack) Freeman – CFO

 

STOCK ANALYSIS

 

 

 

 

 

 

Chart courtesy of stockcharts.com

 

The price of ATNY since the Nasdaq listing has stayed relatively stable.  It’s been bouncing between about $7.50 and $7.00.

ATNY’s 52-week low was $3.32 and the 52-week high was $8.25.  Right now the stock is trading at $7.10.  The 50-day moving average is near $7.11 a share and the 200-day moving average is at $6.64.  The company has a market cap of $348 million and 49 million shares outstanding.

 

 

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All stock prices, charts, and figures updated as of July 11 2011.