Since the turn of the century, Elecsys Corporation has taken multiple strategic initiatives in order to grow its technology business. With three operating subsidiaries under its name including the acquired DCI Incorporated (2000), Network Technologies Group (2004) and Radix Corporation (2007), Elecsys is growing amidst the current economic recession. As of this past Tuesday, Elecsys has now entered the Nasdaq stock exchange under the ticker symbol ESYS and is currently trading at $3.00 USD/share.
Elecsysâ€™s collective revenue from the three subsidiary companies has increased from 14.6 million in 2006 to 19.8 million in 2007, and to 23.4 million in 2008. More impressively â€“ considering its acquisition of Radix Corporation in 2007 â€“ is that Elecsysâ€™s gross profits have increased from 4.7 million in 2006 to 5.9 million in 2007, and to 8.2 million in 2008. This represents a 75% increase in gross profits over the three year period. Upon looking at the quarterly financials over 2008, the worst quarter for perhaps the rest of the nation, was the most profitable quarter for Elecsys (this being the last quarter of the year).
Upon looking at several key statistics across the board in relation to its competitors, Elecsys seems to be outpacing them all in terms of percentages. When comparing operating margin, EPS, quarterly growth, gross margin, and so forth, Elecsys is currently leading companies such as Celestica Incorporated, Flextronics International Ltd, and Sanmina-SCI Corporation by large ratios. For example, Elecsysâ€™s EPS currently is 0.301 whereas Celesticaâ€™s EPS is -3.142, Flextronicsâ€™s EPS is -7.177, and Sanmina-SCIâ€™s EPS is -0.982.
It is also interesting to note that many of the officers within Elecsys during the past year have been purchasing an increasing number of shares of the company, all of which have been purchased above the current trading price. While not always a sure-fire indicator, we believe when multiple officers within a company purchase any meaningful amount of stock, it is a positive reflection of the company itself.