Tel-Instrument Electronics Corp. (TIK) Stock | Impressive Q2 Fiscal 2016 Financial Results


Tel-Instrument Electronics Corp. (NYSE: TIK)


Tel-Instrument Electronics Corp. (TIK), a designer and manufacturer of avionic test and measurement solutions company yesterday announced positive second quarter fiscal 2016 financial results. Revenues were 6.8 million a 90% increase on second quarter fiscal 2015. Non- GAAP EBITDA was $964,465 or $0.30 per share compared to a loss of $234,847 for second quarter fiscal 2015.


Tel-Instrument Electronics Corp. CEO Comments

Commenting on the results, Mr. Jeffrey O’Hara, President and CEO of Tel, stated,

“We are pleased to report a fourth consecutive quarter of profitability as well as record revenues and operating income in the latest quarter. In the latest quarter, the Company’s cash balances increased to almost $800k despite continued reductions in accounts payable and long-term debt. 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.”

“With backlog at the end of the second quarter now at $19.7 million, the Company is actively working both domestic and overseas opportunities. The untapped Mode 5 market is significant, and the Company has already sold Mode 5 test equipment to 18 different foreign countries, and we expect a longer term international growth opportunity as customers look to comply with the January 1, 2020 mandate for Mode 5 installation. The Company also 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. We are also actively working on next generation test sets for both commercial and military market that we believe will be extremely competitive and will expand our core markets. We also continue to investigate opportunities in other markets based upon core competencies in RF, Digital Design and Test Solutions, and we are excited about fiscal year 2016 and beyond.”  Business Wire


TIK Technical Analysis


TIK gapped up in price yesterday to $6.07, up from the prior day’s close of $5.49, which is a 11% increase on the favorable news. Taking a look at the daily chart, we can see the last time TIK traded above this price level was on June 24th, when it closed at $6.13.  Taking a closer look at the daily chart we can see that TIK has been rallying off of its 52 week low price of $3.82 reached on August 24th. The next significant resistance level for this spike up would be $6.40 reached on June 22nd.  TIK does have a low float of 678,000 shares and was trading over 43 times the normal daily trading volume. TIK did open at the  pre market highs. For trading purposes, my entry point would have been $6.10 looking for a run to $6.40. My stop loss would have been $6.00 fearing anything below that and the stock would start to fill in the gap up.


Company Profile

Tel-Instrument Electronics Corp. 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. The company operates through two segments, Avionics Government and Avionics Commercial. It provides instruments to test, measure, calibrate, and repair a range of airborne navigation and communication equipment. The company’s products comprise AN/USM-708 and AN/USM-719, which are communications/navigation radio frequency avionics flight line testers; TS-4530, an identification friend or foe test set; and AN/ARM-206, an intermediate level TACAN test set. It also offers calibration and repair services. The company sells its products directly or through distributors. Tel-Instrument Electronics Corp. was founded in 1947 and is headquartered in East Rutherford, New Jersey.  Yahoo Finance