Winners Circle

[steeledge]

Strong defense play: Sunair Electronics (SNR)
"Sunair Electronics, Inc. is a Florida corporation that was organized
in 1956 and is engaged in the design, manufacture and sale of High
Frequency (HF) SSB/ISB systems utilized for long range voice and data
communications in fixed station, airborne, mobile and marine
strategic applications.

In 101 countries, including the nineteen member NATO community,
Sunair Electronics maintains an established presence in government
and military markets. Since 1956, Sunair has been predominant in the
field of high frequency point-to-point radio communications. Cost-
conscious and quality-conscious, Sunair remains dedicated to the
development, design and production of equipment that is as advanced
as it is reliable. Simply put, Sunair is far and away the most cost-
effective, proven, technologically respected source of supply in its
class."

http://www.sunairhf.com/

Total Cash (mrq): 3.41M
Total Cash Per Share (mrq): 0.9
Total Debt (mrq)²: 0
Total Debt/Equity (mrq): 0
Current Ratio (mrq): 26.097
Book Value Per Share (mrq): 3.904
Shares Outstanding: 3.80M
Float: 1.70M
% Held by Insiders: 55.28%

From the last 10Q:
DURING THE FIRST THREE MONTHS OF FISCAL 2004, THE COMPANY HAD SHORT
TERM INVESTMENTS AND CASH OR CASH EQUIVALENTS MORE THAN ADEQUATE TO
COVER KNOWN REQUIREMENTS, UNFORESEEN EVENTS OR UNCERTAINTIES THAT
MIGHT OCCUR. THE COMPANY'S KNOWN REQUIREMENTS CONSIST OF NORMAL
OPERATING EXPENSES. DURING THIS THREE MONTH PERIOD, CASH AND CASH
EQUIVALENTS HAD AN AVERAGE BALANCE OF $1,629,000 AS OPPOSED TO AN
AVERAGE BALANCE OF $1,506,000 FOR THE TWELVE MONTHS ENDED SEPTEMBER
30, 2003. CASH EQUIVALENTS ARE TAX EXEMPT MONEY MARKET FUNDS THAT ARE
READILY AVAILABLE FOR IMMEDIATE USE SHOULD THE OCCASION ARISE. IT IS
ANTICIPATED THAT THE COMPANY WILL REMAIN AS LIQUID DURING FISCAL
2004. THE CURRENT RATIO OF THE COMPANY AS OF DECEMBER 31, 2003 WAS
26.1 COMPARED TO 13.8 AS OF SEPTEMBER 30, 2003.


Read the last line of their earnings release here: "The majority of
the current back-log is expected to be delivered this fiscal year,
with delivery of a substantial portion in the second and third
quarters."

Therefore, SNR is going to be reporting vastly increased EPS
for Q2 and Q3.

=========
Sunair earned net income of $172,539 in the first quarter of fiscal
2004, or revenues of $1,377,916, as compared to net income of $69,052
on revenues of $1,159,754 for the quarter ended December 31, 2002.
Primary earnings per share for the quarter was $0.05 compared to
$0.02 for the same period last year, an increase of 150%. The
Company announced these earnings met expectations.

In January of this year, the Company announced receipt of a $1.7
million delivery order, which is reflected in the back-log at
December 31, 2003 of $5,132,370.

The majority of the current back-log is expected to be delivered this
fiscal year, with delivery of a substantial portion in the second and
third quarters.