AYSI's revenues at this point are primarily tied to the output at their customer's facilities. Their largest customer for example, BHP, continues to produce a record amount of iron ore and is even looking to grow that output in 2016. So long as output remains strong, customers will need to maintain their equipment and AYSI's product helps them reduce cost and increase the efficiency of their operations. I don't see demand for AYSI's product declining.
They also continue to innovate with their existing product line, Arcoplate, with thicker plates as well as new product lines, Armatuff. I see these revenue levels as reported in Q1 as a base level, with potential growth as these new products gain traction and grow AYSI's share.
So to answer your question, I expect AYSI to at least maintain a $20 million annual sales pace, with potential to outperform that level. I think they are setup to produce about $0.15 of EPS at a $20 million sales level.
