Tel-Instrument Electronics Corp. (NYSEAMERICAN: TIK) is having a great start to the trading session this morning, and for good reason. The company announced the receipt of a large order and a certification. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from TIK stock as a result; and
- what we’ll be watching for ahead.
TIK Announces Order And Certification
As mentioned above, Tel-Instrument Electronics is having an overwhelmingly strong start to the trading session this morning after announcing an order and a certification. In a press release issued early this morning, the comapny announced that it has received an $816,000 order for Mode 5 test sets. This order comes from a major United States defense contractor.
In the release, TIK also announced the receipt of a new certification. The certification is the United States Department of Defense AIMS certification, which was provided to the company’s T-47/M5 test set.
In a statement, Jeff O’Hara, President and CEO at TIK, had the following to offer:
We are pleased to report the receipt of the Mode 5 test set order from an important domestic customer. Shipments on this order will commence in the current fiscal quarter. We also expect to receive a larger follow-on order from this customer later this fiscal year. We are also excited to receive certification for our new T-47/M5 dual crypto Mode 5 test set from the U.S. DOD International AIMS Program Office. The T-47/M5 certification is critical to our Mode 5 international marketing efforts as this will be the test set of choice for many international customers. The receipt of this certification should result in additional near-term orders, and will allow us to begin shipments this quarter to certain international customers that require AIMS approval.
We also have several other international contracts in process and expect to report additional international contracts in the near future. We believe this new order, in conjunction with the AIMS certification and the recent $4.3 million test set order from the U.S. DOD, should result in a strong improvement in both revenues and profitability starting in the current quarter.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Tel-Instrument Electronics, the news proved to be overwhelmingly positive. After all, the new order means immediate revenue for the company. Moreover, the certification will likely lead to even stronger revenue ahead. So, it’s not surprising to see that excited investors are pushing the stock for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:24), TIK is trading at $4.66 per share after a gain of $2.21 per share or 90.20% thus far today!
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on TIK. In particular, we’re interested in following the story surrounding the company’s continued work to expand its product offering and sales as the company seems to be doing a great job of that at the moment. Nonetheless, we’ll continue to follow the story cloesly and bring the news to you as it breaks!
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