Optelecom-NKF has a nice quarter
I know I've been heavily oriented toward finances lately, but (especially with a looming recession thanks to an increasingly pathetic dollar and oil over $100 a barrell) I think it's important for integrators and installers to partner with financially sound manufacturers. The IP surveillance market is going shake out at some point. One winner might end up being Optelecom-NKF, which just got itself NASDAQ listed and has successfully morphed itself from what was essentially a cabling manufacturer to a fully formed IP surveillance/networking company. I wrote about the plan here in January of 2006, talking with James Armstrong, who had just been appointed to the newly created position of executive vice president of North American operations. Check this quote, talking about their 2005 purchase of NKF, for $26 million: "We saw that the world was changing and NKF had already seen that the world was changing." Armstrong said their profitability and large head start in research and development along IP/Ethernet-ready product lines made NKF very attractive. Now, that acquisition is paying off in what Optelecom-NKF can soon deliver to integrators. "Say, for integrators, there maybe 10 elements to an installation; currently we provide two of those elements. Our strategy is that we want to provide seven." If you've seen Optelecom-NKF at the shows recently, you know they've now got video management software you can throw on a PC and all you've got to get from somebody else is the cameras. Makes you wonder if there's a camera buy in Optelecom-NKF's future. Also, I keep hearing they're going to drop that NKF. They ought to do that sooner than later. Anyway, seems like the plan's working. They just released 3Q numbers today, and things are looking good: The Company reported record revenue for the third quarter of $11.5 million, an increase of 13% from last year's third quarter of $10.1 million. Operating income for the quarter ended September 30, 2007 totaled $1.5 million compared to $963 thousand for the same period last year, an increase of 59%. Net income for the quarter totaled $882 thousand, or $0.24 per fully diluted share, an increase of 123% compared to net income of $396 thousand, or $0.11 cents per fully diluted share, for the same quarter last year. For a company that did just over $33 million in 2005, those are some good numbers.