apio-logo.gifLast month API Nanotronics, a supplier of electronic components to the global defense and communications sectors, announced approximately $3.5 million in new orders for May 2007, which is a record for the company.

pic_phild.jpgPhillip DeZwirek, Chairman and CEO of API (pictured left), stated, "The record new orders for May and our record backlog is further indication of the strength in our businesses. We are particularly encouraged by the successful integration of National Hybrid.

This acquisition is already a substantial contributor to API and looking to fiscal 2008; we believe there is tremendous opportunity for realization of further synergies and continued growth."

Total new orders for the month of May equaled $3,497,996. In addition, API's backlog as of May 31, 2007 stood at $16,492,586, another record for the company.

According to the company's announcement order strength was evident across the company's divisions and highlighted by $1.49 million from Filtran, a supplier of key components to the communications industry.

The Company’s focus is the manufacture and design of high reliability semiconductor and microelectronics circuits for military, aerospace and commercial applications.

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Today company's stock performance is not maybe what company’s management might have expected, as the stock is priced at $1.64 per stock. Company's stock hit its highs on April when it arrived at $3.49 per stock. Since the early beginning of May stock has been gradually going down.

The Company through acquisitions has expanded its manufacturing and design of electronic components to include filters, transformers, inductors, and custom power supplies for land and amphibious combat systems, mission critical information systems and technologies, shipbuilding and marine systems, and business aviation.

On January 24, 2007 the Company borrowed $6 million from Can-Med Technology, Inc. d/b/a Green Diamond Oil Corp. (the “Lender”) in order to fund its purchase of the stock of the National Hybrid Group from the Estate of Benedict Pace, and to provide the Company with additional working capital.

On January 25, 2007, the Company acquired all the stock of National Hybrid, Inc. and Pace Technology, Inc. (“National Hybrid Group”) from the Estate of Benedict G. Pace (the “Estate”), the owner of such stock. The purchase price was $9.75 million payable in cash.

The Company saw United States sales increase by 10.5% from $8,625,815 for the nine months ended February 28, 2006 to $9,535,729 for the nine months ended February 28, 2007.

Canadian sales increased by 11.8% from $1,552,332 for the nine months ended February 28, 2006 to $1,735,526 for the nine months ended February 28, 2007 and UK sales increased by 2.0% from $1,196,638 for the nine months ended February 28, 2006 to $1,219,989 for the nine months ended February 28, 2007.

The increase in United States and UK sales is a result of the inclusion of Keytronics and National Hybrid sales for the nine months ended February 28, 2007. Sales to Canada increased solely as a result of an increase in sales by the Filtran Group in Canada.


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API Nanotronics is the smallest player in the share market, losing its place to players, such as Internation Rectifier, Skyworks Solutions and Technitrol.

In all of the aspects API Nanotronics is last. So the company has to put in many efforts if they want to be the best or at least go neck to neck with the competitors in the same business.

Overall, so far company has been running profitably lately with a growing number of sales. We assume that it could be a very good buy if the stock drops down to $0.5 per stock.


References:

http://www.apinanotronics.com
http://finance.yahoo.com/q?s=APIO.OB

Key executives of API Nanotronics Corp (APIO, APIO message board)

NameAgePosition
Arnold Markowitz Gen. Mang. of Filtran Group
Claudio A. Mannarino B.com C.m.a.44 Chief Financial Officer, VP of Fin., Chief Financial Officer of Nanotronics Sub and VP of Fin. of Nanotronics Sub
Joanne E. Mills44Assistant Sec., HR Director of API Electronics Inc. and Sec. of API Electronics Inc
Phillip Dezwirek46 Chairman, Chief Exec. Officer, Treasurer, Controller, Member of Audit Committee, Chief Exec. Officer of Nanotronics Sub, Chairman of Nanotronics Sub, Chairman of Api Electronics Inc and Chief Exec. Officer of Api Electronics Inc
Thomas W. Mills55Pres, Chief Operating Officer, Director, Member of Special Loan Committee, Pres of Nanotronics Sub, Chief Operating Officer of Nanotronics Sub, Director of Nanotronics Sub, Pres of Api Electronics Inc and Chief Operating Officer of Api Electronics Inc