Stocks to Watch – LGL Group, Inc. (NYSE Amex: LGL)
The LGL Group, Inc. is a holding company with subsidiaries that focus on manufacturing electronic components in a variety of markets. The Company operates through its principal subsidiary, M-tron Industries, Inc., which includes the operations of M-tron Industries, Ltd. (Mtron), and Mtron’s subsidiaries Piezo Technology, Inc. and Piezo Technology India Private Ltd (jointly PTI). The combined operations of Mtron and PTI are referred to as MtronPTI.
The LGL Group Inc.’s engineering and design origins date back to the early part of the last century. In 1917, Lynch Glass Machinery Company, the predecessor of LGL, was formed, and emerged in the late twenties as a successful manufacturer of glass-forming machinery. The growth of the company over the years has come from both principal growth in technology advancement and acquisition.
The company was then renamed Lynch Corporation, and incorporated in 1928, under the laws of the State of Indiana. In 1946, Lynch was listed on the “New York Curb Exchange,” the predecessor to the American Stock Exchange (AMEX). The company has had a long history of owning and operating various businesses in the precision engineering, manufacturing and services sectors.
The company announced the latest results for the quarter ending September, 2011. Total third quarter earnings were $9,629,000, a decrease of 22.3% from revenues of $12,397,000 previous third quarter in 2010. Net income for the three months ended September 30, 2011, was $91,000, compared with $1,978,000 for the same period in 2010.
On November 10, 2011, The LGL Group, Inc., entered into a new employment agreement with Gregory P. Anderson to serve as the Company’s President and Chief Executive Officer, effective as of November 2, 2011. The news is seen as a proactive step by the LGL Group to boost its current profitable divisions and put M-tron Industries Inc., back on secure footing in non-defense related markets.
The Company is developing a new product (the “SF2620R”) designed specifically for applications in the 4G/LTE wireless infrastructure, sensor networking and SmartGrid markets. The firm is considered a world leader in frequency control and filters products. It has introduced the new ISM Band 915 MHz RoHS SAW Filter RoHS compliant SAW filter (“SF2620R”) at a time when there has been a downturn in its stock value due to several global economic factors.
The decreases in revenue and net income primarily were the result of reduced order activity for the Military, Instrumentation, Space and Avionics (“MISA”) market segment due to uncertainty related to government budget and spending cycles, as well as the effects of weakness in the global climate.
LGL Group, Inc. (Public, NYSEAMEX:LGL) Range 6.82 – 7.11 52 week 6.14 – 25.85 Mkt cap 18.02M Shares 2.58M
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