AMLJ Communications (fka AMLJ)

[MikeDDKing]

The CC today was very informative as usual. Here are some notes.

1. They have 3 LOIs out for acqusitions. Each LOI contains offer terms. Two of the three LOIs have progressed with further discussions. To me it sounds like we will have one or two acquisitions in the next six months.

2. Funding of acquisitions will use cash first, debt second, and stock third. The acquisitions are planned to be accretive.

3. They have a new product that will add $1M in incremental revenue per year. This product is not yet mentioned on their web site.

4. The drop in GM was due to the rampup for the new $1M/year product and rampup for the MALD $3.7M contract.

5. The MALD contract will increase to roughly $5M/year in future years.

Once again, I think the fireworks for AMLJ will start in fiscal Q4 as I expect that is when earnings will start to ramp.