Company description

Mon, 26 Aug 2013 04:00:00 GMT

Torotel Products specializes in the custom design and manufacture of a wide variety of precision magnetic components, consisting of transformers, inductors, reactors, chokes, toroidal coils, high voltage transformers, dry-type transformers, and electro-mechanical assemblies. Torotel Products sells these products to original equipment manufacturers, which use them in products such as aircraft navigational equipment, digital control devices, airport runway lighting devices, medical equipment, avionics equipment, down-hole drilling, conventional missile guidance systems, and other defense and aerospace applications. Our airport lighting devices have consisted of ballasts assemblies and injection molded products. The ballasts assemblies have been built since 2009 while production of the injection molded products began in late calendar year 2010.

Electronika's ballast transformers activate and control the lights in airplane cockpits and passenger compartments and are used as spare and replacement parts in DC-8, DC-9, DC-10, MD-80, and MD-88 aircraft.

Research

Tue, 03 Sep 2013 04:00:00 GMT

TTLO specializes in the custom design and manufacture of a wide variety of precision magnetic components. The company then sells these products to original equipment manufacturers in the defense, aerospace, medical, and energy markets. Reasons that we are tracking the company:

Although 2013 quarterly sales and EPS (fiscal year ends April) were within its recent historical range of $2 million to $3 million, commentary from the company’s 2013 10-K indicates that the company will be in a position to grow its sales and earnings at a healthy clip in its fiscal 2014 year.
The company’s backlog up 29%.
The company is anticipating new orders in 2013.
Defense stocks may begin to perform well due to the conflict in Syria.
Recently, the company began realizing the benefits from its new product introductions.
The company has been fairly accurate with respect to its past business outlook guidance.
Using the TTLO’s historical backlog to sales relationships as a guide, we believe that 2014 revenues will range between $12 million and $15 million, compared to $12 million in 2013.
If the company can demonstrate that it can come in at the high end of our revenue estimate, we believe shares could trade north of $2.00.

Some caveats include:

The company has a history of reporting quarterly volatility in sales and earnings.
Management does not issue press releases.

We are eagerly awaiting the company’s results for its 2014 first quarter and will attempt to interview management.

(TTLO) research, news, and more from GeoInvesting

Company description

Research