Shares of Electronic Control Security, Inc. (OTCBB: EKCS) have soared ahead in Friday morning trading after the company said that it has received a prime contract award from the Department of the Navy, Space and Naval Warfare Systems Center Atlantic (SPAWAR).
The Clifton, New Jersey-based provider of integrated entry control and perimeter security systems said that the contract ceiling is for $249.59 million, comprised of a base year period of performance and four one-year options, spread across 13 awardees. According to Electronic Control Security’s president and CEO Arthur Barchenko, the company expects to capture at least 10 percent of the task orders in the contract.
“We are looking forward to establishing a presence in Charleston, [South Carolina] and developing a strong working relationship with our partners and the customer,” added Barchenko.
The full scope of the new contract covers the entire spectrum of non-inherently governmental services and solutions (equipment and services) associated with the full system lifecycle support.
February is proving a fruitful month for ECSI coffers. On the 8th of the month, the company reported international sales through the receipt of a series of purchase orders valued at $1.6 million to supply security equipment for the Kingdom of Saudi Arabia’s Frontier Forces.
The company, which specializes in high-profile, high-threat environments, also said that additional proposals have been submitted for product and services in Saudi Arabia to meet upgrade mandates by the Ministry of Defense, Ministry of Interior and oil and gas facilities.
The large contracts would be a shot in the arm to the balance sheet. In the company’s latest SEC filings, unaudited revenue for the six-month period ended was $854,178, down from $1.67 million in the comparable period in 2011. In the October through December quarter of 2012, revenue was $422,104 versus $552,569 for the same quarter the year earlier.
On the upside, the net loss was pared from 3 cents per share to 1 cent per share for the six-month period and from 4 cents per share to 1 cent per share for the latest quarter as compared to the year prior periods, largely because of a 43 percent reduction in SG&A expenses.
The company still has a clean share structure with only 13.9 million shares outstanding as on February 8, 2013. Should expenses be controlled, the company could potentially manage to swing to a profit in upcoming quarters, providing a boon to its tiny $2.43 million market cap.
Of course that valuation got a big boost to its current level with a jump of more than 110 percent today on the news. Shares closed Thursday’s session at 8.3 cents, but have risen to 17.5 cents Friday morning on light volume of 35,800 shares.
As of 12:15 PM ET, the bid stands at 11 cents and the ask is 17.5 cents.
Electronic Control Security (EKCS) Stock Quote and News:
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