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SEC Filings
ARGON ST, INC. filed this Form 10-Q on 06/13/1995
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New Orders and Backlog

       In the nine months ended April 30, 1995, the Company received orders in
the amount of approximately $604,000 as compared to approximately $2,426,000
in the first nine months of fiscal 1994.  Included in the orders received in
the first nine months of fiscal 1994 was the Defaulted Contract for
approximately $1,031,000.  The Company's backlog at April 30, 1995 was
approximately $222,000 as compared to approximately $1,622,000 one year
earlier. Included in the backlog amount at April 30, 1994 was $236,000
relating to the Defaulted Contract. Subsequent to April 30, 1995, the Italian
customer of the Defaulted Contract expressed its intent to reaffirm its order.
In addition, the Company and its customer preliminarily agreed to a price
increase of approximately $46,000, and the Company has removed the $928,000
relating to the Defaulted Contract from its April 30, 1995 backlog.  The
Company expects to receive an acceptable letter of credit from this customer
that will allow the Company to ship the two systems ordered, which are
nearly complete, prior to July 31, 1995, although no assurances can be given
that this contract will be favorably settled.  Management will not ship these
systems to their original customer without assurance of payment.

       On June 12, 1995, the Company received the long-delayed standard
product order for approximately $1,600,000 and the Company expects to soon
receive a substantial downpayment thereon.  As the Company has already
completed most of this system, the Company expects to be able to recognize
a large portion of this contract in fiscal 1995.  

       The Company continues to be engaged in substantive discussions for an
additional substantial standard product order, which would rank among the
largest orders ever received by the Company.  The Company has begun production
for the anticipated standard product order, therefore, the Company will be
able to recognize revenue immediately upon signing it to the extent completed
at that time.  However, Management does not anticipate receiving this
anticipated standard product contract in fiscal 1995, or that it will
contribute significantly to fiscal 1995 revenue even if received before the
end of the fiscal year. As is normally the case, the Company is engaged in
discussions with other potential standard product customers and hopes that
these discussions may result in one or more standard product contracts
in the near future. There can be no assurance that the above orders will be

       During the first nine months of fiscal 1995, backlog was consumed faster
than orders were received.  The rate at which orders were received during the
first nine months of fiscal 1995 was below the level required for the Company
to be profitable.  The Company expects to consume all of its April 30, 1995
backlog, and it expects to substantially complete the long-delayed contract
and the Defaulted Contract in fiscal 1995.  Approximately $185,000 of the
April 30, 1995 backlog consists of lower margin customer-funded development
contracts.  Of the $604,000 bookings received by the Company in the first nine
months of fiscal 1995, approximately $365,000 was in customer-funded product
development, with the remainder for standard products.    

       As the Company expects to consume its April 30, 1995 backlog and to
substantially complete the Defaulted Contract and the long-delayed contract in
fiscal 1995, the Company will begin the next fiscal year with a very small
backlog unless it receives another substantial order before fiscal year end. 
The Company's continued viability depends upon receiving significant orders in
the next few months.  Management is hopeful that such orders will be received
and that the Company will remain a going concern, although no assurances can
be given.

       The results of operations for future periods are dependent upon the
receipt of future orders, their timing, and securing payment for the Defaulted

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