LGL Marks Top and Bottom-Line Growth for 3rd Straight Quarter
LGL Group (TRV), through its subsidiaries, manufactures custom-designed highly engineered electronic components. On August 17th 2010, LGL reported second quarter of 2010 earnings. This marked the 3rd straight quarter of top and bottom-line growth.
MISA (Military Instrumentation, Space and Avionics) contracts won in the second half of 2009 have begun to contribute significantly to revenue. The contracts deal with military personnel protection and homeland security. Despite record revenue, backlogs improved slightly from $14.3 million to $14.4 million and have shifted from MISA to telecom.
The firm currently competes in a fragmented market which management projects to be somewhere in the area of $4.0 billion. Broken down by geography 26% of the business is aligned in North America, with 21% attributed to Europe and 50% in the Asia-Pacific region. The majority of this market (80%) supplies to the low end standardized commodity market.
What remains is the specialized components markets. This is where the firm competes, primarily in the MISA market and the telecommunications and Networking infrastructure segments.
On August 5, 2010 LGL announced that MtronPTI entered into an agreement with Jackson Labs Technologies Inc. to develop and market Global Positioning Satellite Disciplined Oscillator (GPSDO) modules. Jackson Labs, based in Los Gatos, CA, is a privately-held company that designs precision timing, testing and measurement instruments.
According to Greg Anderson, LGL Group’s President and Chief Executive Officer, the agreement will combine Jackson Labs’ extensive technology portfolio with LGL’s oscillator products and manufacturing expertise. The result should be state-of-the-art timing and frequency solutions to customers in the multi-billion dollar telecom, military, security, space and avionics markets.
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