Boston, MA 03/06/2014 (wallstreetpr) – Arotech Corporation (NASDAQ:ARTX) is into providing various products to the defense and security sector. It announced that one of its divisions has been awarded a follow on order by one of its customers.
Follow on orders:
Follow on orders are very important in the competitive sector of Arotech Corporation (NASDAQ:ARTX). It denotes that the customer has reposed faith on the company’s products and it is satisfied with its service. The company announced that its Battery and Power Systems Division has got a follow up order for two different types of batteries and chargers. The order is worth approximately 3.5 million and the batteries are expected to be used for thermal imaging systems and tactical communications systems.
Battery stocks in focus:
Battery stocks have remained in focus in the last week after Tesla Motors Inc (NASDAQ:TSLA) announced plans to set up a mega factory for manufacturing batteries. The factory will be set up in partnership with Panasonic as well as others and is expected to start production by 2017. It is also expected to have production capacity equal to the total global production in 2013. Such a huge factory and that too by a leading innovator like Tesla has raised expectations that the company will also seek to expand the usage of batteries. Companies like Arotech Corporation (NASDAQ:ARTX) will also gain with the expansion of the markets as the overall demand will increase globally.
The company in focus:
The company has turned in some solid financial performance lately; it has seen a strong revenue growth and has also managed to control its debt levels. However its profit margins have disappointed investors. Currently, the company enjoys gross profit margins of just 29%, this leaves the company with only 3.7% as net profit margins. However, revenues have continued to grow by more than 8%, outpacing the industry average of 7.5%. This has lead to an improvement in its earnings per share in spite of low margins.
