AM Communications records record quarterly revenue

Looking at third-quarter fiscal results that ended Dec. 31, 2001, business is booming for small broadband telecommunications vendor AM Communications--and things continue to look good going out.

The company said it posted the highest quarterly revenue in its 27-year history--$11.4 million, which was up 216% from the same quarter in 2001. AM reported net income of $1.6 million during the quarter, compared with $150,000 at the same time last year.

Revenues generated by the Broadband Services Business unit, which began operations in January 2001, were $5.7 million for the quarter, compared with $37,000 in the second fiscal quarter. Additionally, the revenues of the recently acquired SRS Communications/EDJ Communications grew 19% since the close of the acquisition.

And things should continue to be positive. The company is estimating that revenue from existing contracts could be as much as $31 million over the next 12 to 15 months.

“We consider the third-quarter results to be persuasive evidence that AM’s recent acquisitions and new business initiatives are working as planned,” said Joe Rocci, group vice president of the Broadband Products business unit.

Rocci did caution, though, that “total revenue for the current quarter will be substantially lower than the quarter just reported because our fourth fiscal quarter coincides with many of our customers first budget quarters and customer spending against new budgets usually begins within a few months of the beginning of the calendar year.”

This, however, did not deter him from predicting “a very strong fiscal 2003.”

Rocci also outlined--sketchily--the company’s plans to raise as much as $2 million in additional equity through the sale of convertible preferred stock.

This move, he said, will garner “short-term capital for the company in order to meet short-term working capital needs and to finance certain strategic initiatives that, if successfully implemented, will enhance the company’s growth opportunities.”

Federal regulations, he said, precluded more specific details about the initiatives but “if the company is successful … the dilutive effects of preferred stock offering will be offset by the company’s future growth.”