AMLJ Communications (fka AMLJ)

[MikeDDKing]

I've been studying AMLJ a bit further today and I think things look even better than I originally thought.

They have $3.922M in new larger orders that they have received since July 7th in three orders. We know that the $1.5M power amplifier order is scheduled for delivery by 03/31/2010. I suspect that most if not all of the roughly $4M in large orders will be delivered by 03/31/2010. Revenue only jumped $900K sequentially from the June quarter (fiscal Q1'10) to the September quarter (fiscal Q2'10). That suggests that they have something like $3.1M of those large orders to complete in two quarters. Their revenue up until last quarter has been in the $3.3M range. Therefore, based upon what we know on the order flow alone as of today, I expect revenue in the next two quarters to be in the $4.8M range per quarter. Based upon this information alone I think it is likely that the fiscal Q3'10 (December) quarter is a sequential improvement over fiscal Q2'10 that had diluted EPS of $0.05/share.

The company has also stated the following on their web site: "The company has made significant investements in automation. Automation has been used extensively during this Fiscal Year 2010 to reach a new high in production levels. Recently we introduced a second shift and are in process of training a third shift." That suggests to me that my expectations above are low. Now I'm guessing that the March quarter (Fiscal Q4'10) is going to be in the $5-$6M revenue range.

If I use fiscal Q4'10 revenue of $5.5M, I'd guess diluted EPS in Fiscal Q4'10 of rougly $0.065-$0.07/share. Earnings are always tough to guess but the information above suggests to me that a big move in AMLJ share price is likely quite soon.