EF Johnson Technologies Inc. (NASDAQ: EFJI)
EF Johnson Technologies Inc. (EFJI) is a provider of secure wireless communications solutions. The Company designs, develops, markets and support wireless communications, including wireless radios and wireless communications infrastructure and systems for digital and analog platforms, and secure wireless networking solutions that include Wireless-Fidelity (Wi-Fi) products, mesh networking, access points, bridges and client products. In addition, it offers encryption technologies for wireless voice, video and data communications. The Company provides its products and services to domestic and foreign public safety/public service entities, federal, state and local governmental agencies, including the Departments of Homeland Security and Defense, and domestic and foreign commercial customers. The Company sells its products and systems through direct sales force, dealers, manufacturing representatives and distributors. EF Johnson Technologies has operations in North America, Europe, the Middle East, Asia, and Central and Latin America.
The Company was formerly known as EFJ Inc. and changed its name to EF Johnson Technologies Inc. in May 2008. EF Johnson Technologies was founded in 1978 and is based in Irving, Texas.
|
Share Statistics (09-Dec-09) |
|
FY 2007 |
FY 2008 |
% Chg |
Q3 2008 |
Q3 2009 |
% Chg |
|
| Symbol |
EFJI |
Revenue, $Mn |
154.6M |
126.3M |
18.3% |
34.50M |
24.41M |
29.2% |
| Current price |
$1.44 |
Gross marg. |
26.5% |
33.8% |
21.5% |
37.4% |
n/a |
n/a |
| 52wk Range: |
$0.58-1.97 |
Oper. margin |
-12.7% |
-16.2% |
21.6% |
2.6% |
n/a |
n/a |
| Avg Vol (3m): |
169,845 |
Net margin |
-26.6% |
-16.5% |
38.0% |
1.9% |
n/a |
n/a |
| Market Cap. |
38.1M |
|
|
|
|
|
|
|
| Dil. Shares Outst. |
26.5M |
EPS, $ |
-1.45 |
-0.79 |
45.5% |
0.02 |
-0.06 |
400% |
|
|
|
|
|
|
|
|||
Source: Reuters.com, SEC Filings.
Financial Summary
Revenues were $24.4 million, gross margin was 34% and net loss was $1.6 million, or $(0.06) per diluted share, for the three months ended September 30, 2009. Third-quarter revenues decreased $10.1 million as compared to last year’s third-quarter revenues of $34.5 million. Gross profit decreased $4.6 million to $8.2 million in the three months ended September 30, 2009, from $12.9 million for the same period in 2008. Gross profit as a percentage of revenues was 34% for the three months ended September 30, 2009, versus 37% for the same period a year ago.
Operating expenses decreased $2.5 million to $9.5 million in the third quarter of 2009, as compared to last year’s third quarter of $11.9 million. This comparative decline reflects not only integration of our business units, but our continued cost reduction initiatives throughout the year.
Net loss was $1.6 million, or $(0.06) per diluted share, for the three months ended September 30, 2009, as compared to net income of $0.6 million, or $0.02 per diluted share, for the same period last year.
Revenue for the first nine months of 2009 was $77.0 million, as compared to $101.0 million for the first nine months of 2008. The decline in revenues for the first nine months was primarily attributable to lower land mobile radio revenues, partially offset by increases in government services revenues. Gross Margin was 37% for the nine months ended September 30, 2009, versus 35% for the same period a year ago. Net loss for the first nine months of 2009 was $1.7 million as compared to net loss of $0.1 million for the first nine months of 2008. Loss per diluted share for the first nine months of 2009 was $(0.07) as compared to breakeven for the same period in 2008.
| Financial Strength (9-Dec-2009) | Company | Industry | Sector | S&P 500 |
| Quick Ratio (MRQ) | 1.15 | 2.47 | 1.73 | 0.90 |
| Current Ratio (MRQ) | 2.11 | 2.89 | 2.05 | 1.06 |
| Long-Term Debt to Equity (MRQ) | 0.00 | 22.92 | 18.63 | 125.93 |
| Total Debt to Equity (MRQ) | 27.32 | 37.36 | 29.71 | 192.90 |
Source: Reuters.com, SEC Filings.
Analyst Consensus
|
Buy |
Outperform |
Hold |
Underperform |
Sell |
No Opinion |
This is the consensus forecast among 1 polled investment analysts. Against the EFJohnson Technologies Inc. company.
|
Analyst Detail |
Buy |
Outperform |
Hold |
Underperform |
Sell |
No Opinion |
|
Latest |
1 |
0 |
0 |
0 |
0 |
0 |
|
4 weeks ago |
1 |
0 |
0 |
0 |
0 |
0 |
|
2 months ago |
1 |
0 |
0 |
0 |
0 |
0 |
|
3 months ago |
1 |
0 |
0 |
0 |
0 |
0 |
|
Last year |
1 |
0 |
0 |
0 |
0 |
0 |
The one analyst offering a 12-month price target expects EFJI share price to rise to 2.20 in the next year from the last price of 1.25.
Source: www.ft.com
|
|
# of Estimates |
Mean |
High |
Low |
1 Year Ago |
|
SALES (in millions) |
|||||
|
Quarter Ending Dec-09 |
1 |
31.00 |
31.00 |
31.00 |
47.00 |
|
Quarter Ending Mar-10 |
1 |
30.00 |
30.00 |
30.00 |
– |
|
Year Ending Dec-09 |
1 |
108.00 |
108.00 |
108.00 |
165.00 |
|
Year Ending Dec-10 |
1 |
131.00 |
131.00 |
131.00 |
– |
|
EARNINGS (per share) |
|||||
|
Quarter Ending Dec-09 |
1 |
0.03 |
0.03 |
0.03 |
0.12 |
|
Quarter Ending Mar-10 |
1 |
0.01 |
0.01 |
0.01 |
– |
|
Year Ending Dec-09 |
1 |
-0.03 |
-0.03 |
-0.03 |
0.28 |
|
Year Ending Dec-10 |
1 |
0.10 |
0.10 |
0.10 |
– |
Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=EFJI.W
Investment Highlights
EFJI recently announced that it has been named as one of several contractors under a contract issued by the U.S. Internal Revenue Service (IRS). The contract is an indefinite delivery/indefinite quantity (ID/IQ) contract that allows various federal government agencies to purchase P25 digital two-way radios and related equipment from time to time from a select group of companies, including EF Johnson Technologies Inc. The maximum total value of the five-year contract is $750 million; however, the contract does not specify purchase dates or quantities of equipment from any specific contractor.
EFJI also recently announced that its 3e Technologies International (3eTI) subsidiary has received a $3.1 million contract from the U.S. Defense Threat Reduction Agency (DTRA). The contract calls for the Company to provide engineering and technical services as the lead integrator of communications and weapons of mass destruction (WMD) sensor technology integration with the Vessel Boarding Inspection System (VBIS). VBIS supports U.S. Coast Guard and U.S. Navy in expanded maritime interdiction operations (EMIO) missions. VBIS utilizes secure broadband and sensor technologies to support maritime interdiction operations by providing the interdiction teams with below decks connectivity on board a boarded vessel and enables transfer of WMD data over a secure wireless network for reach-back analysis. The Company will leverage its FIPS 140-2 validated and Common Criteria certified technologies and expertise to develop and demonstrate a solution that provides secure voice and data communications below decks on boarded vessels in a maritime environment.
Source: http://www.efjohnsontechnologies.com/
Technical Analysis
Source: http://stockcharts.com
EFJI is trading above its upper Bollinger Band. Relative to recent price action, the stock is currently overextended and due for either a pause or retracement.
EFJI’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.
Comparative Analysis
|
Company Name |
Ticker |
Price per |
Mrkt. Cap. |
P/E |
P/S |
||
|
Dec-9-2009 |
symbol |
Share, $ |
$ Mn |
2009 |
2010 |
2009 |
2010 |
|
|
|
|
|
|
|
|
|
| Alvarion Ltd. |
ALVR |
3.77 |
233.75M |
n/a |
n/a |
0.91 |
n/a |
| Motorola Inc. |
MOT |
8.42 |
19.46B |
n/a |
n/a |
0.85 |
n/a |
| RELM Wireless |
RWC |
3.90 |
50.69M |
30.48 |
n/a |
2.03 |
n/a |
| Communications Median |
|
|
6.58B |
n/a |
n/a |
1.26 |
n/a |
| EFJohnson Technologies Inc. |
EFJI |
1.44 |
38.1M |
n/a |
n/a |
0.32 |
n/a |
Source: Thomson Financial
Insider Trading Activity
|
NET SHARES PURCHASE ACTIVITY Inside Purchases – Last 6 Months |
||
|
Shares |
Transaction |
|
| Purchases |
n/a |
0 |
| Sales |
n/a |
0 |
| Net Shares Purchased (Sold) |
n/a |
0 |
| Total Insider Shares Held |
474.47K |
n/a |
| % Net Shares Purchased (Sold) |
0.0% |
n/a |
|
Net Institutional Purchases — Prior Qtr to Latest Qtr |
|
|
Shares |
|
| Net Shares Purchased (Sold) |
(2,825,940) |
| % Change in Institutional Shares Held |
(34.4%) |
Source: Yahoo Finance
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