Tel-Instrument Electronics Corp (TIKK) research, news, and more from GeoInvesting

Company description

Thu, 26 Dec 2013 05:00:00 GMT

Tel-Instrument is a leading designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, and government/military aerospace and defense markets. Tel-Instrument provides instruments to test, measure, calibrate, and repair a wide range of airborne navigation and communication equipment.

Research

Tue, 02 Sep 2025 19:31:56 GMT

Tel Instrument Electronics Corp. (OTC Pink: TIKK) ($3.40; $9.5M market cap) announced a business update:

We issued the following tweet late Friday afternoon:

The full summary of the business update:

Delayed Form 10-K filing for fiscal year ended March 31, 2025
Working with bank to extend credit line
Planning capital raise involving insiders and management
Shares will trade on OTC Pink until 10-K is filed
Secured full-rate production approval from the U.S. Navy for new CRAFT upgrade kits (AN-USM-708A and AN/USM-719A)
Initial Navy delivery order for 150 kits issued, with further orders expected
Navy contract expected to add $5 million annually in revenue
Production of CRAFT 708A to begin in September
SDR-OMNI and SDR-OMNI/MIL products gaining market traction

"We have delayed filing our Annual Report on Form 10-K for the fiscal year ended March 31, 2025, as we continue to work with our bank on the terms for extending our credit line. We are also working on a capital raise with corporate insiders and management to shore up our balance sheet and help finance the impending sharp growth in our business. Until the 10K is filed, TIC shares will trade on OTC Pink.

On a separate note, TIC has secured full-rate production approval from the Navy for the new CRAFT upgrade KITS (AN-USM-708A and AN/USM-719A). The Navy has issued the initial delivery order for 150 upgrade KITS with additional orders expected this year. This Navy contract is expected to increase revenues by about $5 million per year. We are also starting CRAFT 708A production in September. Finally, the SDR-OMNI and SDR-OMNI/MIL test sets are both gaining increasing market traction.

"Quarterly revenues are expected to increase sharply once CRAFT 708A production and the Navy contract commence. This should result in solid profitability given the largely fixed nature of our cost structure."

Our Quick Take:

We will monitor this story closely as $5 million per year is pretty significant given the current roughly $3 million quarterly revenue run rate. Investors need to know that TIKK management has a long history of overpromising and underdelivering. We actually wrote about potential growth tailwinds in 2019, driven by required communication upgrades the U.S. and allied forces military needs to meet. We need to revisit why TIKK has not met past goals. Regardless, it does seem like the company is finally starting to win contracts related to this mandate. For those that want to dig deeper, the mandate surrounds the “Identification Friend or Foe” (IFF) system, requiring: every ship, aircraft, or other platforms must be able to quickly identify whether another contact is friendly, neutral, or hostile.

Tel-Instrument Electronics Corp. designs, manufactures, and sells avionics test and measurement instruments used to evaluate, calibrate, and maintain navigation and communication equipment for commercial, military, and government aerospace markets.

Research

Mon, 16 Aug 2021 14:31:32 GMT

Tel-Instrument Electronics (OOTC:TIKK)(aerospace & defense) announced Q1 2022 results:

Sales of $4.1 million vs $2.9 million in the prior year
EPS of $0.11 vs $0.01 in the prior year

“We are pleased to report improved operating results for the first quarter, on revenues of $4.1 million. This was generated by strong sales from our military business and a modest rebound in our commercial business. The COVID-19 supply chain issues we experienced in the prior fiscal year appear to be easing and we are cautiously optimistic that this trend will continue. The Company continues to do an excellent job at managing operating expenses with a 4% year-over-year reduction. Backlog remains strong at the end of the first quarter at $6.1 million. We expect the international Mode 5 test set business and orders for the F-35 program to remain strong for the next several years. We are also actively working with the U.S. Navy on a “mid-life” update of our CRAFT test sets which could result in significant revenues over the next five to 10 years. We also continue to invest in our market leading Mode 5 products and plan to demonstrate new Mode 5 Level 2B test capabilities at an upcoming military test event. This could potentially lead to future software upgrades of all of our Mode 5 test sets in the field”

See our reasons for tracking note from December 2019, which covers the company’s history of reporting lumpy quarters and how government mandates could help propel growth moving forward. It appears the company believes it may have reached a point of possible consistent growth moving forward. We will move the company up our research funnell and monitor the company’s progress closely.

Research

Thu, 12 Nov 2020 18:08:01 GMT

Tel-Instrument Electronics (OOTC:TIKK) ($3.40, $11.0M market cap) (aerospace & defense) announced Q2 2021 results:

Sales of $3.3 million vs $3.9 million in the prior year
EPS of $0.04 vs $0.11 in the prior year

“We continue to be profitable with our second quarter income before taxes approximately double that of our first quarter, despite the impact of COVID-19 on our supply chain and labor force. The pandemic has resulted in a significant reduction in our commercial test set bookings and has delayed some orders from our domestic and international military customers. With the resurgence of the COVID-19 virus across the country, managing our supply chain and manufacturing operations will remain a challenge for the remainder of this fiscal year….

the Company has never been in a stronger position with orders for Mode 5 and legacy test sets continuing and the Company aggressively expanding into related high-growth areas such as specialty engineering for Lockheed Martin and the military communications test set market. On a final note, we wish the best for Joe Macaluso, our Chief Accounting Officer, who announced his departure from the Company earlier this week. Joe has done a fantastic job at TIC and will be missed. Mr. O’Hara will assume Joe’s responsibilities until a replacement is named.”

Research

Wed, 19 Aug 2020 19:24:10 GMT

Tel-Instrument Electronics (OOTC:TIKK) ($4.44, $14.4M market cap) announced Q1 2021 results:

Sales of $2.9 million vs $3.3 million in the prior year
EPS of $0.01 vs $0.04 in the prior year
Backlog of $4.4 million vs $4.0 million in March 2020
Awarded new $956K contract from Lockheed Martin

“Despite the impact of COVID-19 on our supply chain and labor force, the Company remained profitable in the first quarter of the 2021 fiscal year. This was a difficult quarter as we were forced to shut down our manufacturing facility in May for over a week as a result of COVID-19 infections among our manufacturing staff. We have also had numerous at-risk members of our manufacturing staff opt out of work due to the severity of the pandemic in the Tri-State area. The pandemic has also resulted in significant reductions in our commercial test set bookings and has delayed some orders from our domestic and international military customers.

TIC was also notified this week that it has been awarded a $956K contract from Lockheed Martin to support the F-35 Joint Strike Fighter... Lockheed Martin is a key customer and we are thrilled to be working with them on this critical program. It is expected that this development and testing program will be completed within 12 months.”

Research

Tue, 30 Jun 2020 17:58:18 GMT

Tel-Instrument Electronics (OOTC:TIKK) ($3.40, $11.0M market cap) (aerospace & defense) announced Q4 2020 results, where commercial revenue was negatively impacted by COVID-19:

Sales of $3.8 million vs $4.1 million in the prior year
Non-GAAP EPS $0.10 vs $0.13 in the prior year
Full year sales of $15.7 million vs $12.1 million in the prior year
Full year non-GAAP EPS of $0.35 vs a loss of $0.16

“We are pleased to report strong operating results for the 2020 fiscal year despite some supply chain issues in March due to COVID-19. The increase in revenues has been driven largely by growing international sales which accounted for over 50% of our revenues. The Company continues to do an excellent job managing operating expenses which were essentially flat for the year with the exception of profit-sharing accruals. The Company has now recorded strong profitability for six consecutive fiscal quarters, and we expect that this trend will continue for the 2021 fiscal year and beyond."

On pending litigation with Aeroflex:

“With respect to the Aeroflex litigation, the Company has appealed the $4.9 million judgment and has set aside $2 million in restricted cash to support an appeal bond. The appeal submissions are now complete. We continue to believe that the trial judge erred in his legal ruling with respect to standing and other issues during the trial, and that we have strong grounds for the award to be vacated or reduced.”

See our reasons for tracking note from December 2019, which covers the company’s history of reporting lumpy quarters and how government mandates could help propel growth moving forward. It should be noted that COVID-19 has possibly delayed some programs, which the company commented on in its release:

“The COVID-19 pandemic is expected to result in a sharp contraction in our commercial avionic test set business for the near to medium term, but it is expected that the international Mode 5 test set business and orders for the F-35 program will remain strong for the next several years. We also continue to work with the U.S. Military and the major prime contractors on new programs, and we are in discussions with the U.S. military on an upgrade program that could generate revenues starting as early as this fiscal year.”

Although TIKK management believes that it can maintain strong profitability through COVID-19, it does not state whether or not its non-commercial revenue can offset the COVID-19 related fall off in commercial revenue.

Research

Thu, 13 Feb 2020 17:19:31 GMT

Tel-Instrument Electronics (OOTC:TIKK) ($4.46, $14.7M market cap) (aerospace & defense) announced Q3 2020 results:

Sales of $4.7 million vs $3.9 million in the prior year
EPS of $0.18 vs $0.03 in the prior year

“The Company has now recorded strong profitability for five consecutive fiscal quarters and we expect that this trend will continue for the remainder of the 2020 fiscal year and beyond. We are particularly pleased to have secured the $1.87 million T-47/M5 order from Muirhead Aerospace, our European distributor, for the U.K. military subsequent to the end of the third quarter. We expect the international Mode 5 test set business and orders for the F-35 program to remain strong for the next several years. We also continue to work with the U.S. Military and the major prime contractors on new programs, and we are in discussions with the U.S. military on an upgrade program that could generate revenues starting as early as the next fiscal year.”

When we first published our reasons for tracking on TIKK, we were somewhat concerned about the company’s ability to maintain profitability as it embarked on some new revenue opportunities. We held this opinion because the company had a history of reporting lumpy quarterly and annual revenue and profitability. The company is clearly benefiting from government mandates requiring the U.S. allied military nations to adopt updated communication test protocols. It now seems quite possible that the company can maintain an elevated level of sales and profitability for the near future. It is still unclear how lumpy the quarterly revenue and EPS will be, even at these possibly elevated levels.

However, with the stock now trading at a TTM P/E of 9, we feel it can trade much higher, maybe attaining a P/E of 15, which would equate to a price of $7.65. We are going to try and reach out to management to determine if this quarter is repeatable.

Research

Mon, 25 Nov 2019 16:49:37 GMT

Tel-Instrument Electronics Corp (NYSE AMEX:TIKK) ($3.60, $11.7M market cap) (aerospace & defense)

Even though TIKK is not a high conviction holding for us, we think it might be helpful to understand the new direction management is trying to take the company. Some of the key points we like about the story include:

The company has reported nice year over year growth in the last four quarters
Management has been embarking on some growth initiatives designed to drive more consistent growth
While defense contracts account for the majority of revenues, the launch of its first commercial products in 10 years should help expand customer concentration
Information arbitrage in company 10-K filing, which points to the company expecting to continue to improve both revenue and gross margins
We are beginning to think TIKK could be an interesting takeover candidate. With its new commercial product, TIKK has its eye on stealing market share from its commercial competitors.

Our full Reasons for Tracking is still on the docket, however we don’t have a time frame as to when it will be released. We’ll definitely keep you posted.

Research

Wed, 13 Nov 2019 16:18:12 GMT

Tel-Instrument Electronics Corp (NYSE AMEX:TIKK) ($2.90; $9.3M market cap), a company that designs, manufactures, and sells avionics test and measurement solutions for the commercial air transport, general aviation, and government/military aerospace and defense market, announced Q2 2020 results:

Sales of $3.9 million vs $2.2 million in the prior year
EPS of $0.11 vs loss of $0.08 in the prior year

With our improved backlog and strong business prospects from the international Mode 5 test set market, we believe that we will deliver improved revenues and profitability for the remainder of the 2020 fiscal year and beyond. Bookings improved in the second quarter to $5.1 million which included the German follow-on order. We are working on several large international contracts and expect an additional substantial German order in early 2020. We expect the international Mode 5 test set business and orders for the F-35 program to remain strong for several years. Our near-term goal is to continue strengthening our balance sheet and set-aside sufficient cash reserves to fully discharge the Aeroflex damage award in the event that we are unsuccessful with our pending legal appeal. We are well on our way to achieving this milestone with cash balances hitting $4.25 million at September 30, 2019. We also continue to work with the U.S. Military and the major prime contractors on new programs, and we are in discussions with the U.S. military on an upgrade program that could generate revenues starting as early as the next fiscal year.

With respect to the Aeroflex litigation, the Company has appealed the $4.9 million judgement and has set aside $2 million to support an appeal bond. The appeal submissions are now complete. We continue to believe that the trial judge erred in his legal ruling on standing and other issues during the trial and that we have strong grounds for the award to be vacated or reduced. Our attorneys estimate that it will take over a year from now for this appeal to work its way through the Kansas court system.

An issue with the company has been its history of inconsistent growth as it deals with lumpy government contracts. Now that the company has reported four straight quarters in a row of profitability we are mildly intrigued. Although the level of profitability and revenue has been volatile over these quarters.

Research

Thu, 19 Sep 2019 18:32:59 GMT

Tel-Instrument Electronics Corp (NYSE AMEX:TIKK) ($2.88; $9.3M market cap), a company that designs, manufactures, and sells avionics test and measurement solutions for the commercial air transport, general aviation, and government/military aerospace and defense market, announced a new order for $535k from the U.S. Military for its Mode 5 test set.

This order brings Q2 bookings to $4.6 million and $19.4 million for past 12 months.

“bookings have improved substantially over the last year reflecting a combination of strong U.S. DoD orders as well as growing international demand for our Mode 5 test sets. In the current quarter, we have secured large Mode 5 test set orders from both Canada and Germany. We anticipate continued strong international demand for Mode 5 test sets as we approach the July 1, 2020 deadline for the decertification of Mode 4 IFF. We are currently working on other significant international opportunities which we hope to secure later this fiscal year. We continue to do a solid job in capturing the lion’s share of large Mode 5 test set market which should result in improved revenues and profitability going forward.”

Research

Thu, 05 Sep 2019 18:37:28 GMT

Tel-Instrument Electronics Corp (NYSE AMEX:TIKK) ($3.10; $10.2M market cap) - In our recent coverage we mentioned we were working on a reasons for tracking note for TIKK, a company that designs, manufactures, and sells avionics test and measurement solutions for the commercial air transport, general aviation, and government/military aerospace and defense markets. Yesterday we issued the following tweet:

The company has a history of over-promising and under-delivering, as well as reporting sporadic growth over the years. We intend to determine if new developments are putting the company on a more consistent growth track.

How we look for clues when reading through 10-k’s is important for you to understand. For TIKK, we examined the company’s product offerings and comments associated with those products for the past 3 years.

Management sometimes offers potential clues about how a specific product class can help drive growth as well as updates on new product launches and contract win. We're looking for information arbitrage verbiage in the 10-K that might not be present in press releases or for clues indicating that management has changed its sentiment about the outlook of business.

Among some of these focus points are questions as to how long it usually takes the company to fill contracts that it has been awarded in the past. Also, does the company have a history of making bullish comments in its filings that don't come to fruition?

We are finalizing our RFT note, but wanted to share the 10-K research section with you so you can understand part of where we are in the process

Research

Mon, 26 Aug 2019 13:43:36 GMT

Tel-Instrument Electronics Corp (NYSE AMEX:TIKK) ($3.30; $10.7M market cap), a company that designs, manufactures, and sells avionics test and measurement solutions for the commercial air transport, general aviation, and government/military aerospace and defense markets announced a $1.48 for Mode 5 test sets from the contract awarded by the German military. This order is part of a seven-year procurement contract with anticipated orders for the 2019 calendar year estimated at $3.5 million.

“We are pleased to receive this follow-on order for the German military which brings total orders received thus far on this contract to $2 million. Tel has made several customer-requested enhancements to these test sets which will require AIMS re-certification prior to shipment. The goal is to secure AIMS certification and ship these upgraded units this calendar year. We are also seeing increased demand for our new T-47/M5 dual crypto test set with almost $750k of orders received for the Canadian military this quarter. We continue to work on other substantial domestic and international orders that we hope to secure over the next few months.”

In our August 14, 2019 Q1 2020 earnings coverage, we mentioned after several years of TIKK over-promising and under-delivering, we thought we’d never actively track the company again. However, we are very impressed with the progress Tel-Instrument has made over the last several quarters to bring consistency back to the business and improve margins.

We are currently working on an RFT (reasons for tracking) note for TIKK.

Research

Wed, 14 Aug 2019 14:54:42 GMT

Tel-Instrument Electronics Corp (NYSE AMEX:TIKK) ($2.40; $7.8M market cap), a company that designs, manufactures, and sells avionics test and measurement solutions for the commercial air transport, general aviation, and government/military aerospace and defense markets, announced Q1 2020 results:

Sales of $3.3 million vs $1.8 million in the prior year
EPS of $0.05 vs a loss of $0.25 in the prior year
Backlog of $4.8 million vs $1.8 million in the prior year (down sequentially from Q4 of $6 million)

“With the improved backlog and strong business prospects from the international Mode 5 test set market, the Company believes that it will report improved revenues and profitability for the remainder of the 2020 fiscal year and beyond. We received a $547k order for additional T-47/M5 test sets for Canada in July and are working on several large international contracts in addition to the pending German order. We expect the international Mode 5 test set business and orders for the F-35 program to remain strong for several years. Our near-term goal is to continue strengthening our balance sheet and set-aside sufficient cash reserves to fully discharge the Aeroflex damage award in the event that we are unsuccessful with our pending legal appeal. We also continue to work with the U.S. Military and the major prime contractors on new programs, and we are in discussions with the U.S. military on an upgrade program that could generate substantial revenues starting as early as the next fiscal year.

"As a result of the potential new military applications for our new 4.5 pound SDR/OMNI hand-held test set, we are currently evaluating a hardware CPU change to further improve high speed processing capabilities. This change will likely move the initial product introduction for the commercial avionics market into next calendar year, but expect it will better position the Company for high dollar military contracts which will be critical to our long-term growth in revenues and profitability. The goal of this new test set is to expand out of our relatively narrow avionics test market niche and enter the much larger secure communications radio test market."

Litigation Update:

"With respect to the Aeroflex litigation, the Company has appealed the $4.9 million judgement and has set aside $2 million to support a cash bond. Aeroflex responded to our appeal brief in July 2019. The Company’s 15 page response is due to be submitted on September 7, 2019. We continue to believe that the trial judge erred in his legal rulings on standing and other issues during the trial and that we have strong grounds for the award to be vacated or reduced. Our attorneys estimate that it will take several years for this appeal to work its way through the Kansas court system, but that ongoing future legal expenses will be nominal."

After several years of over-promising and under-delivering, we thought we’d never actively track TIKK again. However, we must admit that we are very impressed with the progress Tel-Instrument has made over the last several quarters to bring consistency back to the business and improve margins.

The company was dealt a big blow when on March 11, 2019, NYSE delisted TIKK’s shares for non-compliance and refused to give the company a listing extension. This led investors to largely ignore the company's progress over the last couple of quarters. We are making it a top priority to interview management.

See our prior coverage on TIKK here.

Research

Tue, 02 Jul 2019 04:00:00 GMT

Tel-Instrument Electronics Corp (NYSE AMEX:TIKK) ($2.37; $7.2M market cap), a company that designs, manufactures, and sells avionics test and measurement solutions for the commercial air transport, general aviation, and government/military aerospace and defense markets, announced Q4 2019 results:

Sales of $4.1 million vs $2.1 million in the prior year
Non-GAAP EPS of $0.17 vs a loss of $0.24
Backlog of $6 million vs $2 million in the prior year

“With the improved backlog and strong business prospects from the international Mode 5 market, the Company expects that it will report improved revenues and profitability for the 2020 fiscal year. The Company is currently working on several large international contracts and expects to receive a large follow-on award from Germany this summer. We expect the international Mode 5 business and orders for the F-35 program to remain strong for a number of years. Our goal for the current fiscal year is to continue strengthening our balance sheet and capture over 90% of the international Mode 5 market...

...With respect to the Aeroflex litigation, the Company has appealed the decision and has set aside $2 million to support a cash bond. We believe that we have solid grounds for the award to be vacated or reduced. Aeroflex is expected to respond to our appeal brief by July 24, 2019. The appeal process is expected to take another two years to complete and the majority of the costs to appeal this adverse decision have already been spent.”

The Q4 numbers are not discussed clearly, offering a slight information arbitrage opportunity. It’s necessary to dig into the filings to get the Non-Gaap Q4 financials.

We do see a few caveats to this story. Even though the backlog is up nicely year over year to $6 million vs. $2 million, it is sequentially down from 9.7 million. Also, the company mentions improved profitability for fiscal 2020. However, quarterly financial inconsistency has been a staple for the company. Even though they guide for a better 2020, the range of possibilities is wide given the company operated at a minor Non-Gaap profit for 2019. Taking into account the company’s inconsistent financial performance over the past several years, we want to gain more clarity on management's statements. Obviously, if TIKK can continue to build upon second half fiscal 2019 results, the story will become a bit more interesting and worthy of pursuing, especially since it seems their order pipeline is strong. Having said this, we are obviously concerned about the ongoing litigation with Aeroflex (see company commentary above)

Research

Mon, 11 Mar 2019 14:40:28 GMT

Tel-Instrument Electronics Corp (NYSE AMEX:TIK) ($3.45; $11.7M market cap) designs, manufactures, and sells avionics test and measurement solutions for the commercial air transport, general aviation, and government/military aerospace and defense markets. Today, the Company announced that the NYSE denied its appeal to remain listed on the NYSE.

Jeff O’Hara, Tel’s President and CEO stated, “We are disappointed with the NYSE’s decision to delist the Company and not provide an additional extension to meet their minimum net worth requirement. We provided compelling evidence that we should regain compliance within the next nine to twelve months as a result of strong growth in revenues and profitability. We were not willing to raise additional equity capital, and dilute our current shareholders, to meet an arbitrary deadline. The Company is exploring alternatives for the quotation of its common stock to ensure the best possible trading platform for our shareholders.”

In late January, we discussed the Company’s turnaround progress and mentioned the notice from the NYSE. You can see the full note here.

Research

Tue, 29 Jan 2019 15:18:35 GMT

Can Tel-Instrument Electronics Corp (NYSE AMEX:TIK) ($5.65; $18.3M market cap) be trusted this time around? TIK designs, manufactures, and sells avionics test and measurement solutions for the commercial air transport, general aviation, and government/military aerospace and defense markets.

Knowing that we like turnaround stories, a GeoInvesting premium member has alerted us that TIK may have that potential.

Historically, TIK has over-promised and under-delivered on both sales and earnings. The company's heavy reliance on the government and fluctuating margins on various projects has been a source of extreme volatility in its financial performance over the years. Adding to that, TIK is facing a possible delisting from NYSE.

On December 20, 2018, the company received a notice from the NYSE:

“The Company was advised that the Staff of the NYSE American is planning to commence proceedings to delist the Company’s common stock from the Exchange for failure to meet the $4 million minimum net worth requirements pursuant to Section 1009 of the NYSE American Company Guide. This mandates that a company’s stockholders’ equity be $4.0 million or higher if such company has reported net losses in three of its last four fiscal years (the “Stockholders’ Equity Requirement”). The NYSE had previously provided the Company with an extension for compliance with the Stockholders’ Equity Requirement until January 29, 2019.”

However, a few management quotes from recent press releases are worth noting since they allude to more visibility than in the past, improved margins and an increase in its presence in commercial markets. The key factor here is if it can follow through and prove sustainability in all of these facets.

The Company has had some nice contract flow recently. Here is an excerpt from its December 21, 2018 contract award release:

“This most recent order brings our total bookings for this quarter to almost $10 million. These bookings and other large pending orders should result in a strong improvement in both revenues and profitability starting this quarter and continuing into the next fiscal year where we expect to see significant activity in the international Mode 5 market.”

Quotes from Q2 2019 release:

“The recently announced $4.3 million test set order from the U.S. DOD and pending volume orders from domestic and international Mode 5 customers should result in a return to solid profitability for the current fiscal year with revenues and profits expected to further improve in the 2020 fiscal year. We are also working to introduce our new SDR/OMNI test set by the end of this fiscal year, and we are very optimistic that this will let us regain a market leading position in the commercial avionics market and allow for future expansion into the much larger secure communications test market.”

“While second quarter revenues were $2.2 million due to delays in the receipt of in-process orders and export license approvals, the Company did, however, materially improve its bottom line with our operating loss for the quarter declining to under $100,000. This was accomplished by tight cost controls including the streamlining of our manufacturing processes and reductions in overhead, resulting in our gross margins growing to 45%, which was double the year-ago percentage. Gross margin percentages should continue to improve going forward based on much higher projected revenues and a favorable product mix.

We will keep you posted on future developments.

Research

Mon, 16 Nov 2015 15:24:18 GMT

TIK ($5.49, marked up pre-market) announced second quarter 2016 results:

Revenues increased to $6.8 million, a 90% increase versus the comparable period of fiscal year 2015.
GAAP earnings per share of $0.06 per share, versus a loss of $0.08 per share in the comparable period of the previous year.
Non-GAAP EPS of $0.22 vs loss of $0.10 in the same period last year.

Quote from management:

“Management believes that our operating results going forward will continue to benefit from increased volume and the shipment of more of the higher priced CRAFT units, as well as from the full production release of the TS-4530A SETS which are expected to begin shipping in January 2016.”

Our ongoing concern has been whether or not the company’s new revenue stream would necessarily translate to a boost in the bottom line. Margins have suffered in past quarters, but improved to 32% vs 24% in Q2 2016 vs the prior year. We will take a closer look to determine if the gross margin improvement for Q2 2016 can be sustained. We had a chance to speak to TIK management about consistent improvements in margin at a recent microcap conference, and we were told that consistent growing margin was still 18-24 months out.

Comments & Business Outlook

Fri, 09 Oct 2015 12:56:23 GMT

EAST RUTHERFORD, N.J.--(BUSINESS WIRE)--Tel-Instrument Electronics Corp. (“Tel”, “Tel-Instrument” or the “Company”) (NYSE MKT: TIK), a leading designer and manufacturer of avionics test and measurement solutions, today announced that preliminary unaudited revenues for the second quarter ending September 30, 2015 increased to a record $6.8 million, a 90% increase over the same quarter last year. Preliminary six months revenues increased to $12.7 million, representing an 89% increase over the same period last year.

Jeff O’Hara, Tel’s President and CEO noted, “Tel has done a solid job of driving revenues and profitability during the first half of this fiscal year. We have also made great strides improving our balance sheet. We continue to explore opportunities worldwide and to invest in research and development to position our products and services for future growth.”

Comments & Business Outlook

Wed, 12 Aug 2015 04:00:00 GMT

First Quarter 2016 Results

Revenues increased to $5.8 million, an 87% increase versus the comparable period of fiscal year 2015.
GAAP basic earnings of $0.09 per share, versus a loss of $0.12 per share in the year ago period.
Non-GAAP EPS of $0.07 vs a loss of $0.09 in the prior year period.

Commenting on the results, Mr. Jeffrey O’Hara, President and CEO of Tel, stated, “We are pleased to report a second consecutive quarter of improved operating results. Management believes that our operating results going forward will continue to benefit from increased volume and the shipment of more of the higher priced CRAFT units, and will also benefit from the full production release of the TS-4530A SETS which are expected to begin shipping in volume prior to calendar year end. The Company also continues to do a solid job in keeping a tight rein on operating costs despite substantially increased revenues. We continue to invest in new product development with the TR-36 Nav/Comm test set being the first product to be released from these efforts. We are also actively working on next generation test sets for both the commercial and military market that we believe will be extremely competitive. We believe that the Company has a solid position in its core Mode 5 flight-line market and we are actively working both domestic and overseas opportunities. The untapped Mode 5 market is significant and securing these higher margin sales could further enhance our operating profitability. We are excited about fiscal year 2016 and beyond.”

Comments & Business Outlook

Thu, 25 Jun 2015 04:00:00 GMT

Fourth Quarter 2015 Results

Revenues increased to $6.4 million, a 43% increase versus the same quarter in the previous year.
Non GAAP EPS of $0.15 vs a loss of $0.09 in the prior year period

Quotes from management:

"Revenue growth exceeded our expectations for the fourth quarter, and we were pleased to report a return to solid profitability. Management believes that our operating results going forward will benefit from increased volume and the shipment of more of the higher priced CRAFT units. The Company also continues to do a solid job in keeping a tight rein on operating costs despite substantially increased revenues. The Company continues to invest in new product development with the TR-36 Nav/Comm test set being the first product to be released from these efforts. The worldwide Nav/Comm test set market is significant and we believe that this new modern test set will allow us to effectively compete in both the commercial and military market segments. We are excited about fiscal year 2016 and beyond.”

Comments & Business Outlook

Thu, 02 Apr 2015 04:00:00 GMT

$TIK ($6.25) - GeoBargain on the radar Tel-Instrument Corp. (TIK) designs, manufactures, and sells avionics test and measurement solutions for the commercial air transport, general aviation, and government/military aerospace and defense markets in the United States and internationally.

TIK announced fourth quarter 2014 revenues are expected to be $6.44 million, an increase of 43% vs prior year, and ahead of previous guidance of $5.6 million. Management made the following bullish comments:

“This continues the steady momentum we have achieved during this fiscal year with revenues increasing sequentially each quarter. This substantial revenue increase is expected to result in solid bottom line profitability for the quarter.”

Comments & Business Outlook

Thu, 26 Mar 2015 04:00:00 GMT

EAST RUTHERFORD, N.J.--(BUSINESS WIRE)--Tel-Instrument Electronics Corp. (“Tel”, “Tel-Instrument” or the “Company”) (NYSE MKT: TIK) today reported receipt of a $775k order from Lockheed Martin for 21 CRAFT units with delivery scheduled for the first and second quarter of the 2016 fiscal year.

The Company will release unaudited fourth quarter revenues next week.

Comments & Business Outlook

Tue, 17 Feb 2015 05:00:00 GMT

Third Quarter 2015 Results

Q3 2015 revenues of $5.0 million vs $4.0 million in Q3 2014
Q3 2015 Non-GAAP EPS of $0.05 vs $0.05 in Q3 2014

“We are generating strong momentum across all aspects of our business, and anticipate that the U.S. Army will authorize a production release on the TS-4530A SETS in the April timeframe,” stated Jeffrey O’Hara, CEO and President of Tel. “Revenue growth met expectations for the quarter, but the bottom line results were negatively impacted by about approximately $188,000 related to the write-off of deferred financing costs associated with the previous banking arrangement, as well as approximately $190,000 in legal fees and expenses related to the Aeroflex litigation.”

Mr. O’Hara continued, “In an effort to be more transparent and to allow for a better evaluation of our results, Tel will begin to report Non-GAAP results, which will eliminate non-cash transactions, such as the write-down deferred financing costs, changes in the warrant liability, and taxes, which are not owed due to our tax-loss carry-forward. This Non-GAAP adjustment will become more material beginning in the fourth quarter and for fiscal year 2016, when we anticipate reporting increased revenues and stronger bottom line results. Management believes that our profitability is expected to benefit from the increased volume leading to gross margin improvement as well as Tel’s largely fixed cost structure. For the fourth quarter, Tel anticipates revenues to exceed $5.6 million, and a return to profitability.”

Comments & Business Outlook

Thu, 22 Jan 2015 05:00:00 GMT

EAST RUTHERFORD, N.J.--(BUSINESS WIRE)--Tel-Instrument Electronics Corp. (“TIC”) (NYSE MKT:TIK) held its Annual Meeting on January 21, 2015, and delivered a presentation to the shareholders. A copy of the Shareholder Presentation has been filed as an exhibit to the Company’s Current Report on Form 8-K filed with the SEC on January 22, 2015. The Company also announced that third quarter revenues are estimated at $5 million, a 40% increase over the second quarter.

Comments & Business Outlook

Mon, 17 Nov 2014 05:00:00 GMT

Second Quarter 2015 Results

Q2 2015 revenues of $3.6 million vs $4.0 million in the prior year
Q2 2015 net loss per share of $0.08 vs net loss of $0.02 in the prior year

Jeff O’Hara, Tel President and CEO commented, “Revenues of $3.58 were below our expectations as a result of a six week interruption in CRAFT deliveries due to delayed component shipments from vendors, and a technical issue with the U.S. Navy. The technical issue has been resolved, and CRAFT shipments resumed in October. As previously announced, the Company began shipment of the TS-4530 KITS in the second quarter, amounting to almost $1.5 million. We continue to wait for U.S. Army approval on the SETS, but the expectation is that we are still a few months from obtaining approval. Tel also began limited deliveries of the new ITATS product in the second quarter with full rate production expected to be achieved in the third quarter. Revenues are expected to grow in the second half of the fiscal year as a result of our three major programs in full production, except for the TS-4530 SETS. While our backlog at September 30, 2014 was approximately $34 million, our ability to rapidly increase shipments is limited by our financial resources, but we are working with our vendors to increase shipments as rapidly as possible.”

Mr. O’Hara continued, “Second quarter revenues and profitability were negatively impacted by the delays in the CRAFT program which reduced revenues by over $1 million. Gross margins were lower than projected based on the product mix and by higher labor and overhead variances due in part to additional staffing associated with the startup of the TS-4530A and ITATS programs. This also contributed to a temporary increase in inventory and payable levels. These CRAFT issues are now resolved and we are anticipating revenues and profits to substantially improve for the balance of this fiscal year. The key to a sustained improvement in profitability is to secure a production release for the TS-4530A SETS, which is currently scheduled for December, but could potentially slip another month or two. The good news is that the U.S. Army has asked us to increase shipments of TS-4530A KITS starting in the third quarter. Tel’s backlog currently stands at $35 million and more than 50% of the CRAFT backlog is now comprised of higher margin follow-on orders which will start shipping in volume in the next fiscal year. It should be noted that the Company has over $7 million in federal loss carry-forwards, and that earnings will not be subject to significant federal taxes until this is exhausted. We are very encouraged by the new Bank of America term loan as this will substantially reduce interest expense going forward.”

Conference Call Notes

Wed, 20 Aug 2014 04:00:00 GMT

Confernce Call Notes for Q1 2015

· Fiscal Q I 2015 ended June 30, 2014, was a transitional quarter for TIK setting the company up for strong performance in Q II and throughout the rest of fiscal 2015:

o Company invested substantial time, labor and inventory in ramping up TS-4530A and ITATS programs and began generating revenues for both programs in July.

o Had to upgrade hardware and software at no charge to the Navy on 400 CRAFT units, only seven remain. Once upgrades completed begin shipping new units and billing Navy.

o Absorbed $345,000 legal costs for the Aeroflex litigation and the legal costs should drop substantially in Q II. Company believes suit without merit but will continue to be a nuisance.

· Fiscal Q II 2015 revenues should exceed Q II 2014 ($4 million). Fiscal Q III and IV 2015 should be substantially greater than Q III ($4 million) and Q IV 2014 ($4.1 million). Fiscal 2015 revenues will be substantially more than 2014 and the company will be solidly profitable.

· Three main sources of revenues:

o CRAFT test sets IDIQ (Navy)

o TS-4530A (US Army)

o ITAT (US Navy)

· Beginning fiscal Q III, three government contracts alone will generate nearly $6 million revenues per quarter: TS-4530 ($3 million), ITAT ($750,000) and CRAFT (around $2 million). In addition, the company will generate around $750,000 a quarter in commercial and foreign sales and those revenues should increase based on new technologies related to product releases. It is not unreasonable to assume Q II revenues of around $5 million and Q III and IV revenues in excess of $6 or even $7 million if commercial and foreign sales also pick up.

· One analyst on call perturbed that company doesn’t give more detailed guidance and the Street doesn’t know what to expect or how to value the company. Suggested that is main reason for lack of interest in stock.

· Company has an $8 million NOL that will reduce future tax payments but not impact EPS.

· Company has been paying down mezzanine debt at the rate of $68,000 per month and will have it paid off by August 2015, substantially reducing interest expense. Company will seek new credit facility under more favorable terms.

Comments & Business Outlook

Wed, 13 Aug 2014 04:00:00 GMT

First Quarter 2015 Results

For the three months ended June 30, 2014, the Company recorded net sales of $3,129,076 versus net sales of $3,199,975 in the year ago quarter.
For the three months ended June 30, 2014, the Company recorded a net loss of $384,005 ($0.12 per share) as opposed to a net loss of $85,772 ($0.03 per share) in the year ago quarter. The current quarter results were adversely impacted by a $133,881 ($0.04 per share) charge due to the revaluation of the common stock warrants due to the increase in stock price versus a gain of $24,572 in the year ago quarter. Interest expense continued to decline falling to $62,480 in the current quarter versus $104,077 in the year ago quarter.

Jeff O’Hara, President and Chief Executive Officer of TIC, stated, “The first quarter was challenging as we invested a significant amount of time and labor and inventory dollars in ramping up for the TS-4530A and ITATS programs, and we also experienced much higher legal costs related to the deposition phase of the Aeroflex lawsuit. These legal expenses are expected to decline over the next quarter but this will continue to be a drag on profitability until this case is resolved. Working down the CRAFT ship in place was a major achievement as this will allow us to start shipping some of the higher priced Navy CRAFT orders starting in the third fiscal quarter. We are excited to be in KIT production on the TS-4530A program and are pushing for the release of the TS-4530A SETS that should increase monthly revenues by over $500,000. The Company anticipates that second quarter revenues should exceed year ago levels with the third and fourth quarters expected to increase substantially due to higher CRAFT production levels and sales prices and the achievement of full rate production on the TS-4530A and ITATS programs.”

Comments & Business Outlook

Tue, 01 Jul 2014 04:00:00 GMT

Fourth Quarter 2014 Results

Fourth quarter 2014 revenues were $4.5 million compared to $1.9 in the prior year period.
Non-GAAP earnings for the fourth quarter 2014 were $0.15 vs. a loss of $0.36 in the prior year.
The Company also announced the receipt of full rate production approval for the U.S. Army TS-4530A KITS with deliveries of about $400k per month to begin in July 2014.

Quotes from management:
“We are pleased to have made solid progress this last year, with strong revenue growth, a return to modest profitability, and an improved balance sheet. Completing the CRAFT ship in place units this summer will allow us to increase CRAFT shipments including some of the higher priced new orders. While first quarter FY 15 revenues will approximate the year ago levels, we are anticipating further improvements in revenue and profitability for FY 2015 due to the two new programs coming online next month.”

Comments & Business Outlook

Tue, 18 Feb 2014 05:00:00 GMT

Third Quarter 2014 Results

Third quarter 2014 reveneus were $4.1 million compared to $2.3 in the prior year period
Non-GAAP earnings for the third quarter 2014 were $0.03 vs. a loss of $0.30 in the prior year

The Company continues to work with the U.S. Army for a production release. The current U.S. Army schedule calls for a production release in March 2014 but it is possible that this date could slip into the first quarter of the next fiscal year. The Company has shipped most of the SETS and KITS required under the initial limited rate production release and it is critical that the Company receives this production release in a timely manner to continue to build on the growth and profitability it is starting to achieve.

The Company also previously announced that it had negotiated a $2.14 million contract modification on the ITATS program. The ITATS product (“AN/ARM-206”) is a fully automated TACAN test set for use in U.S. Navy Intermediate Level repair locations. This contract modification entails the sale of the IP to the U.S. Navy plus the sale of ancillary test support equipment and a modest increase in the recurring price to reflect several product enhancements. A portion of the IP sale proceeds will go to the Company’s subcontractor on this program. This contract modification is expected to result in a pre-tax benefit of about $1.2 million over the next two fiscal quarters. Management believes that the sale of the IP for the ITATS program should have no impact on sales of these units to the U.S. Navy or other customers, and should improve the Company’s balance sheet and liquidity position and help facilitate the commencement of the ITATS full rate production this summer.

Jeff O’Hara, the Company’s President and CEO, noted that: “the Company has made great strides over the last year in improving its liquidity and looks forward to the commencement of full rate production on the TS-4530A program in the near term. The Company is also making solid progress in working down its inventory of CRAFT “ship in place” units which has been limiting new production builds of CRAFT. It is expected that the CRAFT ship in place units will all be upgraded by this summer which should result in an increase in CRAFT production levels. The Company may also explore opportunities to secure lower cost commercial financing to replace its expensive existing debt this summer. Looking ahead, we are excited by our prospects for a strong conclusion to the current fiscal year and further growth in fiscal year 2015 and years to come. The Company also plans to begin earnings conference calls starting with the filing of the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2014, in June 2014.”

The Company is also announcing the receipt of $4.1 million of additional orders for the U.S. Army TS-4530A program bringing the total backlog on this program to $19.7 million.

Investor Presentations

Tue, 21 Jan 2014 05:00:00 GMT

January 2014 Investor Presentation

Contract Awards

Tue, 14 Jan 2014 05:00:00 GMT

EAST RUTHERFORD, N.J.--(BUSINESS WIRE)--Tel-Instrument Electronics Corp (“Tel”) announced today that it has negotiated a $2.14 million contract modification on the ITATS program. The ITATS product (“AN/ARM-206”) is a fully automated TACAN test set for use in U.S. Navy Intermediate Level repair locations. This contract modification entails the sale of certain Intellectual Property (“IP”) to the U.S. Navy plus the sale of ancillary test support equipment and a modest increase in the recurring price to reflect several product enhancements. A portion of the IP sale proceeds will go to Tel’s subcontractor on this program. This contract modification is expected to result in a pre-tax benefit of about $1.2 million over the next two fiscal quarters. The sale of the IP for the ITATS program should have no impact on sales of these units to the U.S. Navy or other customers. Management believes that the sale of the ITATS IP should improve Tel’s balance sheet and liquidity position and help facilitate the commencement of the ITATS full rate production this summer.