Optex Systems Holdings Inc.
Company website: www.optexsys.com
Optex Systems Holdings, Inc., (OTCQB:OPXS) through its wholly-owned subsidiary, Optex Systems, Inc is a well positioned defense company with an established history in the industry, a strong customer base and a backlog of contracts moving forward.
Optex Systems, Inc. was founded in 1987 as an ISO 9001:2000. In February 2009, the Optex ISO status changed to 9001:2008 certified concern, which manufactures optical sighting systems and assemblies primarily for Department of Defense (DOD) applications.
- December 16, 2013, Optex issued the first Patent covering its Digital Day and Night Elbow Technology - See DDAN Datasheet
Market Opportunity - U.S. Military
Optex products are currently marketed in the military and related government markets. Since 1998, American military spending has increased over 225% on an annual basis to over $600 billion per year. As the American presence overseas continues, this level of spending should continue to exist. Also, the market for replacement parts for existing military equipment is significant.
Optex meets the U.S. military requirements with its product line:
Market Opportunity - Commercial/Retail
- Reliabilty - failure can cost lives
Ability to deliver on schedule
Armed forces need to see to perform
Mission critical products
Optex products are currently sold exclusively to military and related government markets. We believe we have significant potential retail opportunities to commercialize various products we presently manufacture. Our initial focus will be directed in three product areas.
Big Eye Binoculars - While the military application we produce is based on mature military designs, Optex owns all castings, tooling and glass technology. These large fixed mount binoculars could be sold to Cruise Ships, Personal Yachts and Cities/Municipalities.
Night Vision Goggles - Optex presently manufactures the Optical System for the NL-61 Night Vision Goggles for the Ministry of Defense of Israel. This technology is based on the IR Squared design and could be implemented for retail commercial applications.
Infrared Imaging Equipment - Optex manufactures and assembles Infrared Imaging Equipment for Textron and components for Raytheon's Thermal Imaging M36 Mount product. This equipment and technology has potential to be assembled for border patrol, police and security agencies.
Optex products are installed on a majority of types of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, Light Armored and Advanced Security Vehicles and have been selected for installation on the Stryker family of 10 vehicles. Optex also manufactures and delivers numerous periscope configurations, rifle and surveillance sights and night vision optical assemblies. Optex delivers its products both directly to the military services and to prime contractors.
Specific product line includes:
- Electronic sighting systems
Mechanical sighting systems
Laser protected glass periscopes
Laser protected plastic periscopes
Non-laser protected plastic periscopes
Howitzer sighting systems
Replacement optics (e.g. filters, mirrors)
Optex serves customers in three primary categories:
1. Prime contractor for TACOM, U.S. Army, Navy and the Marine Corps.
2. Subcontractor for BAE (LSE: BA.L), General Dynamics (NYSE: GD), Northrop Grumman Corporation (NYSE:NOC) and Raytheon Company (NYSE: RTN).
3. Supplier to foreign governments that include Israel, Australia, NAMSA and South America.
As of September 2013, we derived approximately 89% of our gross business revenue from three customers: 47% from General Dynamics Land Systems Divisions, 30% from The U.S. Government (primarily DLA), and 12% from BAE Systems (with which we have approximately 75 discrete contracts for items that are utilized in vehicles, product lines and spare parts.)
As of August 8, 2014
Outstanding Shares = 170,913,943 --- Float = 56.23M
(Authorized Shares = 2B)
$10.3M (Assets) - $3.0M (Liabilities) = $7.3M (Net Assets)
Market Cap = $2.87M
Price/Book Value = .33 --- Book Value Per Share = .04