Buzz Stock of the Day – American Technology (ATCO)

Maritime piracy incidents were up more than 20 percent in 2008, according to a recent article.

The U.S. military and maritime security industry are taking steps to prevent acts of piracy including the installations of early warning systems like the ones developed by our Buzz Stock of the Day — American Technology Corp. (Nasdaq: ATCO).

American Technology’s LRAD sound-directed early warning systems allow operators to broadcast warning messages well beyond 1500 meters in some cases.

LRAD systems steadily gained adoption both in the U.S. and abroad, as evidenced by the San Diego-based company’s Q2 ghost numbers. ATC announced that it expects to report revenue of more than $5.5 million for the three months ended March 31, a 169 percent over the same period last year.

“With deliveries to the U.S. military leading the way, we continue to experience strong LRAD orders and sales growth,” said Tom Brown, president and CEO of American Technology.

Less than a month ago, ATC announced orders totalling $1 million for LRAD systems for the Singapore Navy, and Japanese Navy.

“Due to continuing piracy and terrorist threats, a growing number of Asian military and commercial security organizations are evaluating and procuring LRAD systems,” Brown said.

In addition to growing sales, the company plans to control costs at lower levels in 2009 than 2008. ATC also stated that it expects its LRAD margins to improve as production volumes increase.

“In addition to increasing military orders, escalating maritime piracy and an amplified focus on aircraft and passenger safety, while controlling and protecting wildlife, are generating demand for our proprietary LRAD systems in the U.S. and around the world,” Brown said.

Here’s a clip from 2006 on how the LRAD systems works:

Tags: buzz stocks, security, small cap stocks, technology

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