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Irvine
Sensors (NASDAQ: IRSN)- March Quarterly Numbers As Expected |
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Irvine Sensors announced the
March quarterly results just after the market closed yesterday, and they
came in pretty much as expected. It seems to be a non-event as far as the
market is concerned. At midday the stock is trading at $1.50 today, up
about $.03.
Revenues came in at $2.5 million,
up only 8% from the same quarter a year ago. However, through the first
half of fiscal 2003 (September year end)
the company had achieved 60% revenue growth from the same period in fiscal
2002.
In light of the recent announcement
of the long delayed $13 million contract with the Department of Defense
and the President's recent investment of $1 million of his own retirement
capital, the market seems to be content to wait for the June and September
quarters, which are certain to be robust. Irvine Sensors seems destined
to have its best year in their 20 year corporate history.
Buried within the 10Q SEC filing
was an exciting piece of good news, and with a little sleuthing I dug it
out. Like so many of their fallen technology brethren (Irvine Sensors is
down from a high of $364 per share), the company has a class action law
suit pending against it.
According to the SEC filing, it appears
the Class Action Law Suit was dismissed by the Judge just this past Monday.
Here is the language contained the the SEC filing:
| We are defendants in a class-action
stockholders lawsuit, an unfavorable outcome of which could harm our ability
to continue our operations, and the defense of which is also substantially
increasing our on-going operating expenses. We have been sued in
a securities class action by certain stockholders who allege that we made
false and misleading statements about the prospects of our Silicon Film
subsidiary during the period January 6, 2000 to September 15, 2001, inclusive.
The complaint asserts claims for violations of Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934 and SEC Rule 10b-5, and seeks damages
of an unspecified amount. We believe that the class action is without merit
and have retained counsel to vigorously defend against the lawsuit. We
filed a motion to dismiss this action in September 2002. This motion was
heard on May 5, 2003, at which time the Court dismissed the complaint
as filed, but granted plaintiffs leave to further amend their complaint
within 20 days. The defense of this lawsuit increased our legal expenses
by $250,000 in fiscal 2002. In addition, the outcome of any litigation
is inherently uncertain, and we may not be able to satisfy an unfavorable
outcome in this litigation, which could cause us to discontinue operations. |
The judge dismissed complaint as
it was filed, but gave the plaintiffs 20 days to file an ammended complaint.
The outcome of the suit is not final at this point in time, but Monday's
decision was a giant step towards a favorable outcome for shareholders
of Irvine Sensors.
I continue to believe this stock
is headed for much higher levels in the near future. The stock could have
sold off today on the weak earnings report. Instead, it headed slightly
higher in a down market. This bodes well for future price appreciation.
Tomorrow at 4:15 PM eastern time,
Irvine
Sensors will have its second quarter earnings conference call. I strongly
recommend you listen in to the web cast version. Simply visit their home
page at www.irvine-sensors.com
to access a link.
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Trading Alert-
Amnis Systems, Inc (OTC BB: AMNME) |
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If you're looking for a turn around
situation in the penny stock arena, consider Amnis Systems. This
stock has been trading at just over $.01 per share for months, but this
past week exploded up the charts on high volume. The company issued a press
released Friday stating the Chairman had resigned and was replaced by new
management.
The stock responded by rebounding
into the $.09 range on twenty times normal volume over the next two trading
days, and has since settled back down to $.07. No doubt the stock had been
priced for bankruptcy.
I reviewed their past SEC filings
and press releases. Despite ongoing losses, this stock was a high flyer
in the microcap arena one year ago, and seems to have exciting technology.
Amnis Systems is one of the
premier providers of video surveillance systems. Their customer base includes
Hughes Network Systems, General Dynamics, Raytheon, Netera Alliance, Northrop
Grumman, Boeing, and Pan Dacom. The company recently announced its system
had been deployed in China by the Changzhou Police Department.
Several sources close to the company
tell me their video compression technology is the best around, and perfectly
adapted to the burgeoning need for video surveillance technologies in the
Homeland security market.
The "E" at the end of the symbol
signifies the company is late with its SEC filings and has filed for an
extension. However, the new President tells me the filings will be brought
up to date in short order, and the "E" will then be removed.
This story brings back fond memories
of our early coverage of Calypte Biomedical. Members will recall
we identified that stock shortly after new management stepped in last May.
From the starting point of $.13 on May 30, 2002, CALY was able to
find its way to a high of $.41 over the next six weeks before starting
its descent and completing a round trip into the basement.
No guaranttees the same will happen
here, but it is certainly worth a roll of the dice with your high risk
money in light of the company's exciting technology. No doubt there will
be more positive developments. The former management could have bankrupted
the company. New management rarely steps in without a plan.
Many thanks to long term OTC Journal
member
Paul K for bringing this one to our attention.
Your comments are welcome
on this or any other subject for the Members' Forum. Please email info@otcjournal.com
with your comments. We publish viewpoints on both sides of any issue.
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