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Globe Newswire  Jun 15  Comment 
NEW YORK, June 15, 2010 (GLOBE NEWSWIRE) -- The Brualdi Law Firm, P.C. announces that it has filed a lawsuit in the United States District Court for the District of Connecticut on behalf of holders of Axsys Technologies, Inc. ("Axsys" or the
Marketwire  Oct 27  Comment 
SIDNEY, BRITISH COLUMBIA -- (Marketwire) -- 10/27/09 -- Editor's Note: There is a photo and video associated with this press release. AXYS Technologies Inc. announced today the deployment of the world's first offshore wind resource assessment buoy -
Motley Fool  Aug 28  Comment 
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Stock picks from investors who've already made big market-beating calls.
TheStreet.com  Aug 2  Comment 
Looking overseas for growth stocks, plus reasons for bidding up eBay's share price.
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JPMorgan plays offense on defense.
Motley Fool  Jul 21  Comment 
Schwab researchers expect solid growth from stocks.
StreetInsider.com  Jul 10  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Axsys+Technologies+%28AXYS%29+Updates+Plan+for+Quarterly+Earnings+Release+Due+to+Pending+Merger/4787658.html for the full story.
Marketwire  Jun 25  Comment 
NEW YORK, NY -- (Marketwire) -- 06/25/09 -- Levi & Korsinsky announces that a class action lawsuit has been filed in Connecticut state court challenging the proposed acquisition of Axsys Technologies, Inc. ("Axsys" or the "Company") (NASDAQ: AXYS).
Motley Fool  Jun 18  Comment 
These five proven winners may be poised to do even better.




 
Axsys Technologies was purchased by General Dynamics in 2009.[1]

Axsys Technologies, Inc. makes surveillance cameras and optical lenses for defense and security systems. Axsys Technologies’ cameras are found in land, marine, and airborne surveillance systems. Their infrared lenses, laser positioners, long-range telescopes, and sensor positioning systems are primarily designed for military weapons and vehicles.

A majority of Axsys Technologies’ sales come from contracts with Government institutions and subcontracts with defense contractors.[2]While Axsys’ growth in sales primarily comes from U.S. government institutions, sales to European contractors and other foreign governments have increased significantly.[3]

Axsys has devoted more resources to developing its optical sensors and thermal imaging equipment in response to the budget growth in the Surveillance and Targeting sector of The U.S. Department of Defense. [4] In addition to the U.S. Military, Axsys has received more orders for optical surveillance equipment from law enforcement agencies as well as commercial companies like Intel, Samsung, and Kodak . Axsys has expanded its operating facilities in order to reduce production costs without sacrificing product quality.[5]

Business Overview

Business Segments

Surveillance Systems Group: This segment manufactures camera systems for use on ground, marine, and aerial vehicles. Fixed, non-stabilized camera systems are designed for border patrol and perimeter security. Gyrostabilized cameras are multi-axis, rotating, high-definition cameras.

Imaging System Group: This segment manufactures specialized optical cameras for use in larger surveillance and defense systems. Products include infrared lenses, laser positioners, long-range telescopes, and precision motion control optics.These products are used in larger systems including targeting system found in the Abrams Tank, the Apache Helicopter, and Sidewinder missiles as well as space-based surveillance satellites.

Trends and Forces

Business with BAE and Raytheon

Government defense contractors, OEMs, and companies that produce consumer goods make up a majority of Axsys Technologies’ customers.[6] For example, Axsys supplies BAE Systems, a British defense and aerospace company, with optical lenses for two armored vehicle programs, thermal weapons sight products, and night vision systems. [7] The continuation and renewal of current contracts with BAE systems and Raytheon depend on U.S. Department of Defense spending and are subject to cancellation.

Homeland Security Becomes an Important Issue for non-Military Agencies and Companies

Homeland Security is no longer the priority of just the U.S. Military. For example, law enforcement agencies, airports, and foreign governments have increased spending on counter-terrorism security products. Its surveillance system group manufactures surveillance cameras systems that can be used in stationary, airborne, and marine surveillance. Since their acquisition of Cineflex's gyrostabilized camera system, sales of these rotatable, long-range cameras have increased by 102%.[8] In addition, Axsys has supplied the U.S. Border Patrol and the Kuwaiti Government with its long-range thermal vision cameras designed for border protection.[9] For Axsys, these spending increases will mean more sales primarily of their gyrostablized cameras, thermal imaging cameras, and infrared cameras. [10]

Broadened Uses for Thermal and Infrared Lenses

Technological advancement in Infrared sensor technology has made infrared cameras more affordable to commercial businesses and individuals. As a result, the number of commercial applications for thermal cameras and infrared cameras has increased. Axsys Technologies’ thermal cameras are used to visually quantify heat and energy usage in addition to providing surveillance. [11] A wider range of applications for Axsys Technologies’ cameras could benefit future sales from non-military customers and make the company less dependent of government contractors as a source of revenue. However, due to the global economic slowdown, many companies are likely to cut spending for new technology. Axsys would lose potential sales to such cuts in spending and to companies that can produce thermal imaging cameras at lower prices.[12]

Axsys Technologies’ gyrostabilized cameras have be been used in applications beyond law enforcement and military defense including aerial motion picture filming. The BBC series “Planet Earth” featured extensive aerial filming of animals using Axsys’ High-Definition gyrostabilized cameras.[13]

Competition

FLIR Systems: FLIR manufactures thermal imaging and infrared camera systems. The Thermography division of FLIR manufactures hand-held thermal imaging systems used by commercial companies, industrial companies, and universities for facility maintenance and scientific analysis. FLIR also produces infrared and night vision camera components designed for installation in larger surveillance camera systems. FLIR also supplies the U.S. Military and U.S. law enforcement agencies with hand-held devices that can be used to detect perimeter disturbances as well as navigation. [14]

Excel Technologies (Privately Held): Acquired by GSI Group in 2008, Excel Technologies generates revenue through subsidiaries. Excel makes electro-optical components and laser systems for scientific, industrial, and medical markets. Their Baublys-Control Laser unit is used for marking and engraving industrial materials. Its Cambridge Technology subsidiary sells optical scanners to biomedical research companies and hospitals.[15]

Mikron Infrared, Inc.(Privately Held): Purchased by LumaSense Technologies in 2007, Mikron produces hand-held infrared thermometers and fiber optic infrared sensors. Its infrared products are used to measure the temperatures of objects such as melted glass, ceramics, industrial boilers and compressors. [16]

References

  1. TraderMark (June 5, 2009). General Dynamics Buys Axys: My Work is Done. Seeking Alpha.
  2. Google Finance: AXYS
  3. AXYS 10-K for 2007, Item 1:Domestic and Foreign Sales, page 9
  4. AXYS 10-K for 2007, Item1: Market Overview, page 3
  5. AXYS 10-K for 2007, Item 7: Facilities, page 28
  6. Customers
  7. AXYS 10-K for 2007,Item 1: Customers page 8
  8. AXYS 10-K for 2007, Item 7:Surveillance Systems Group, page 30
  9. Axsys Technologies 2006 Annual report
  10. AXYS 10-K for 2007, Item7: Surveillance Systems Group
  11. AXYS 10-K for 2007, Item 1: Commercial Thermal Imaging, page 5
  12. AXYS 10-K for 2007, Item 1A: Risk Factors
  13. Axsys Acquires Cineflex
  14. Google Finance: FLIR Systems
  15. Yahoo! Finace: Excel Technologies
  16. Yahoo! Finance: Mikron Infrared, Inc.
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