One of our old favorites, Nighthawk Systems Inc. (OTCBB: NIHK) continues to push forward with publicly stated plans to significantly increase revenues during 2008 and recently announced the largest order ever for its bread & butter remote disconnect units.

During the 2nd week of July, NIHK announced an order for 1,000 of its CEO700 remote disconnect units from Avista Corp. (NYSE: AVA) (“Avista”) of Spokane, Washington. This marked the third order from the utility which generates annual revenues of more than $1.3 billion and provides electric and natural gas service to approximately 633,000 customers .

For those of you not overly familiar with Nighthawk, the company historically provided remote disconnect hardware that in a nutshell allows for the wireless connect and disconnect of virtually any electronic hardware. From electricity meters to hard drives, NIHK’s solutions, namely its CEO700 allowed the company to blossom from annual revenues of $529K in 2005 to roughly $1.7M in ’07 with aspirations to hit the $8M mark in 2008.

The reason for the aggressive outlook in 2008 is that NIHK recently acquired an IPTV set-top box business. For a point of reference, although I personally feel that the outlook may be just a tad on the optimistic side; Analysts are envisioning a market that will house 50 million subscribers by '09 and be worth nearly $40 billion by '10.

Either way, we’re currently looking at a very lucrative, yet fragmented market with no dominant supplier. Even if NIHK can just take a small chunk of the IPTV space, which it appears to be doing through initial contracts with leading hospitality technology providers, that coupled with its thriving utility business creates a very exciting situation going forward. Particularly for people like myself that have been watching the company closely for the past 3 years.

Labels: Nighthawk, Nighthawk Systems Inc., NIHK, OTCBB: NIHK