U.S. Aerospace, Inc (USAE)

[J Sim]

The Quilite Factor

I wonder if this merger is going to end up like the Quilite fiasco.

From a shareholder letter:

Looking ahead, New Century is following a two-pronged growth strategy. In addition to building its core machine-tool manufacturing and remanufacturing business, it has put its ample production capacity to work in a new business line, the production of products made from Quilite. This year, it entered into an agreement with Los Angeles-based Quilite International to assemble modules out of Quilite blocks. We project that this activity could account for roughly half our revenue in 2006 – of $10 million out of a total $20 million. Even before then, in 2005, we expect it to add $0.05 cents per share to our bottom line.