Electronic Control Security Inc (OTC:EKCS)

Tuesday, June 4, 2019

Research

Electronic Control  (OOTC:EKCS) ($0.06; $1.4M market cap)  designs, develops, manufactures, and markets technology-based integrated security solutions. The company issued its latest shareholder letter with results for its six months ending December 31, 2018 (first 6 months fiscal 2019):

  • Sales of $850,641 vs $328,937 in the prior year
  • EPS of $0.01 vs a loss of $0.01

“Management is pleased to report that during the first six months of Fiscal 2019, the Company continued to increase sales, improve cash flow and strengthen its balance sheet.  As of December 31, 2018, the Company’s backlog was $835,000. Approximately 80% of this amount represents product to be supplied to our Nuclear Power Stations and Department of the Air Force customers...

...New contracts and purchase orders projected to close during the January 1, 2019 to June 30, 2019 period are expected to materialize based on the funding of numerous government projects. Management expects this will have a positive impact on both sales and profits in both Fiscal 2019 and 2020.”

The company letter shows a “3 month ending” financial table which we believe should state 6 months ending. We will email the Company to verify that indeed that is a 6 month financial table as well as ask for Q1 results ending in September