AMLJ.. Zen, I have liked this one since I listened to their last CC and have it in my PS9. Their regular business should do very well over the next year with a strong backlog and many orders just starting to be filled. The most interesting part is MicaTech. In the CC, the company said they expect Mica to turn profitable in about a year and be producing revs at $800K per month within 2 years. That means strong growth for a company that did $12 mil in sales last year. The following is from last quarter's PR:
The Mica-Tech solution is a robust two way satellite communications network designed for the control of the Electric Power Grid. Due to its dedicated features and its two way operation, the system has virtually no competition.
The immediate application for the systems is to support the stabilization of the power grid at peak hours to avoid rolling black-outs. It is well known that the marginality of the power grid is at a critical phase; consequently, the USA power utilities have initiated a strategy named Demand Response, by which large financial rewards are offered against pre-agreed, power reduction contracts signed with aggregators.
Specifically, power utilities pay a Demand Response aggregator approximately $8 monthly for every kilowatt under management. Mica-Tech is a Pacific Gas and Electric (PG&E) aggregator and plans to make their first Demand Response installation to manage approximately 20 Mega-Watts by December 2008. This would generate cash inflow of approximately $160,000 per month, and significantly reduce the need for additional financial support. The company plans to increase the power levels under management to over 100 Mega-Watts within 24 months, which could generate cash inflow of approximately $800,000 per month.
AI
