Video Display Corp. has a market cap of $38.5 million; its shares were traded at around $4.6 with a P/E ratio of 153.4 and P/S ratio of 0.5. VIDE is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:The Company generates revenues from the manufacturing and distribution of displays and display components (Display Segment) (71% of consolidated net sales in fiscal 2010) as well as the wholesale distribution of consumer electronic parts from foreign and domestic manufacturers (Wholesale Distribution Segment) (29% of consolidated net sales in 2010). Substantially all of the Companys income before income taxes was derived from the Display Segment of the business in fiscal 2010. See Note 12. Segment Information to the Condensed Consolidated Financial Statements.
Monitors (84%) Data Display CRTs (14%) Entertainment CRTs (1%) Component Parts (1%)
The Company sells to a variety of domestic and international customers on an open-unsecured account basis. These customers principally operate in the medical, military, industrial and avionics industries. The Companys Display Segment had direct and indirect net sales to the U.S. government, primarily the Department of Defense for training and simulation programs that comprised approximately 37% and 40% of Display Segment net sales and 26% and 28% of consolidated net sales in fiscal 2010 and 2009, respectively. Sales to foreign customers were 11% and 13% of consolidated net sales for fiscal 2010 and 2009, respectively. The Companys Wholesale Distribution Segment had net sales to two customers that comprised approximately 34% and 30% of that segments net sales in fiscal 2010 and 2009 respectively. The Company attempts to minimize credit risk by reviewing customers credit history before extending credit, and by monitoring customers credit exposure on a daily basis. The Company establishes an allowance for doubtful accounts receivable based upon factors surrounding the credit risk of specific customers, historical trends and other information.
The Companys backlog is comprised of undelivered, firm customer orders, which are scheduled to ship within eighteen months. The Companys backlog was approximately $31.9 million at February 28, 2010 and $17.8 million at February 28, 2009. The Companys Lexel division, which is in the Display Segment, comprised $10.1 million or 32% and $10.2 million or 57% of the 2010 and 2009 backlog, respectively. It is anticipated that more than 95% of the February 28, 2010 backlog will ship during fiscal 2011.
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