The key risk-on and off drivers today are the same – U.S. politics, global growth, other centr...
More Tech and Biotech
11/03/2006 12:00 am EST
Always on the lookout for unique opportunities in widely varying sectors, Jim Oberweis hones in on companies with special product offerings. In his latest missive to subscribers, he recommends these two companies poised for a tech and biotech comeback.
"Acme Packet, Inc. (APKT NASDAQ GM) is a manufacturer of a networking device called session border controllers (SBC's). These devices control real-time session traffic between two Internet Protocol (IP) networks while providing features previously not available over IP. Using traditional phone lines to send voice, data, and media is expensive, but secure. On the other hand, Internet Protocol networks can cost-effectively transmit voice, data, and media but in a manner subject to security breaches and delays. Acme Packet's session border controllers combine the cost-effectiveness of IP networks with the security and time sensitivity of traditional phone networks. These attributes position Acme Packet's SBC's as critical devices in the expansion of interactive video communications and Voice over IP (VoIP). The company's customer base includes 21 of 25 Tier 1 communications service providers such as Sprint, Alcatel, and Time Warner Cable. On October 12, 2006, Acme Packet issued an initial public offering of 11.5 million shares at $9.50 per share. For the most recent second quarter, the company's sales were $19.1 million, a 130% increase from the same period last year. Acme Packet's net income for the period rose to $5.2 million from a loss in the corresponding year ago period. Please note that even though Acme Packet's earnings per share indicate that they will grow only $0.05, the company's pre-tax income is expected to grow approximately 35%.
"Arrhythmia Research Technology, Inc. (HRT AMEX), through its wholly owned subsidiary Micron Products Inc., produces silver plated and non-silver plated conductive resin sensors. The company also distributes metal snaps used in the manufacture of disposable ECG, EEG, EMS and TENS electrodes. Micron's NEM division manufactures custom injection-molded products for medical, electronic, industrial and consumer applications. Micron's MIT division provides end-to-end product life cycle management through a comprehensive portfolio of value-added services such as design, engineering, prototyping, manufacturing, machining, assembly, and packaging. The Company's products also include proprietary signal-averaging electrocardiography (SAECG) software used in the detection of patients who may be at risk for potentially lethal arrhythmias. The company's revenues in the most recently reported second quarter increased 36% to $4.7 million from $3.4 million in the same year-ago quarter. Earnings in the same period grew to $0.22 from $0.17. Clients of Oberweis Asset Management own approximately 77,000 shares of Arrhythmia Research Technology. These shares may be appropriate for risk oriented investors."
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