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SEC Filings
10-Q
ARGON ST, INC. filed this Form 10-Q on 12/13/1995
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for its services from each of two potential customers.  The Company
believes that there is a sizable market for data that can be produced
with its current ADC and believes that the completion of the enhanced ADC
will give the Company added capabilities, increasing the size of the
potential market.

The second prong of the Company's growth plan involves the formation of
partnerships to obtain and perform international remote sensing programs. 
To this end, the Company entered into three teaming agreements in fiscal
1995 with the intent to sell the combined capabilities to large
consulting engineering companies that are typically the prime contractors
for such international programs.  The Company, through a sales
representative, is currently pursuing international remote sensing
programs.  To date, the Company has not received any contracts in this
area of business. 

The third growth area involves performing domestic environmental remote
sensing programs.  In order to exploit this market, the Company must
perform specific applications and show the results to be reliable and
cost-effective.  To that end, the Company has pursued and obtained a
small remote sensing program and is pursuing other demonstration
projects.  The Company plans to enter into additional business agreements
aimed at developing a corporate domestic environmental assessment
capability.  

Although implementation of the growth plan began in fiscal 1995, revenue
is not expected to be affected materially until late in fiscal 1996 at
the earliest.  If successful, these strategies are expected to reduce
fluctuations in the Company's revenue and earnings and enhance the
Company's profitability and shareholder value.  However, the Company's
implementation of these growth initiatives has been slowed by the small
size of the Company's staff and by its current financial position.  Also
contributing to the delay in implementing the growth plan is the
Company's lack of solid market information caused by the Company's
limited resources.  The Company is seeking partners and additional
financing to help bring these services into the market more quickly.  See
Liquidity and Sources of Capital.

New Orders and Backlog

In the first quarter of fiscal 1996, the Company received orders of
approximately $192,000 as compared to orders of approximately $155,000 in
the first quarter of the preceding year.  Approximately $130,000 of the
fiscal 1996 orders, including approximately $46,000 of service projects
relating to the growth plan, were for standard products.  The Company
received approximately $25,000 in standard product orders in the first
quarter of fiscal 1995, none of which are related to the growth plan.  

The Company's backlog at October 31, 1995 was approximately $213,000
compared to approximately $663,000 one year earlier.   The October 31,
1995 backlog includes approximately $147,000 of standard product backlog,
including $15,000 of service projects relating to the growth plan.  The
Company continues to receive new orders at a level below that required
for break-even.  As the Company expects to consume all of its


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