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Monday, September 15, 2008

Double Platinum Green Building in Michigan

Did you know that the lion's share of the world's CO2 emissions come from buildings?

This phenomenon is even more prevalent in the U.S. than in the rest of the world. Supporting this statement, research indicates that American buildings contribute 38% of the country's total CO2 emissions.

This percentage even surpasses
that of both the transportation and industrial sectors and could grow larger over the next 7 years since the U.S. is expected to add another 15 million buildings to its already cluttered landscape.

The construction of Green buildings is also projected to increase over the next 7 years as the concept gains widespread acceptance and more and more company's benefit from the technological and performance related improvements they facilitate.

Double Platinum Like Lil Wayne

The double platinum green building award was given to the The Lansing, Michigan-based Christman building, which was originally built in 1928. The project took a lot of consideration and effort to meet both external and internal LEED criteria and obtain the double platinum rating while maintaining its historical certification.

How'd They Do It?

The Christman building has under-floor air distribution which provides 200-300% more ventilation than typical systems. In addition, the building is furnished with several other energy efficient features including a white roof with 6” of extra insulation and dim exterior lighting. This was all accomplished by reusing over 90% of the original structure, cutting the cost of material and waste produced.

"One Platinum certification by any standard is extremely commendable," says D. Brooke Smith, project manager for the rehab. She went on to comment "Dual Platinum certifications in conjunction with the same project are unprecedented. Dual Platinum certifications in the context of a historic preservation project involving historic tax credits are almost unimaginable. Yet, through the collaborative efforts of SmithGroup and The Christman Company, this is exactly what the project team accomplished."

More on the Building:

The building is located downtown and entices workers and visitors to use public transportation.
The added showers and locker rooms encourage walking and biking to work (wouldn’t that be a nice touch and incentive to have in every office?). In addition, the Christman facility became 32% more energy efficient by installing Green lighting technologies

Equipping nearly every room in the building with windows was a key contributing factor to the drastic reduction in lighting usage. The addition of sensors, timers, task lighting and Energy Star office equipment also significantly helped the cause. Furthermore, as a baseline energy control mechanism, the building is equipped with a computerized system that monitors and controls the electricity and gas usage as well as atmospheric conditions in and outside.

As the green movement gains clean steam, one company in our portfolio poised to benefit greatly from increased future green building construction in the U.S. is Nighthawk Systems (OTCBB: NIHK). NIHK engages in the design and manufacture of wireless power control products that are a perfect fit for any green building.

The Hawk's remote control product line provides the user with complete control over energy usage even when they are on the other side of the world. Ultimately, this results in reduced energy costs and consumption. Two obvious goals of
any green building.

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Friday, August 15, 2008

Nighthawk Systems Second Quarter Results - Note From NIHK CEO

The following release went out yesterday afternoon shortly after filing our second quarter results with the S.E.C. The Company recorded revenues of $736,356, more than twice the amount of revenues recorded in the same period in 2007. That figure pushed year to date revenues for 2008 through the first six months of the year to $1.6 million, nearly triple the amount recorded in the first six months of last year!

Sales of our traditional power control products led the way during the second quarter, producing
73% of total revenues during the period. Gross profits doubled from 2007 to 2008 as a result of the increase in revenues.



These are great results for the Company, and they could have been substantially larger in terms of revenues had we not shifted the production of nearly 4,000 set top boxes into the current third quarter. That shift occurred because we made changes to the manufacturing process during the second quarter, which will pay immediate dividends during the current third quarter of 2008 and beyond.

Our margins on set top boxes should improve significantly going forward, which will have a direct and positive impact on our bottom line and our cash flows. We've made so much progress with the set top box business since acquiring it last October – we've fully assimilated the business and now we are making improvements both to the product and to the production process, which are going to have a positive impact on the business. This will help us get new customers too.

With the shift of set top box production from the second to third quarter, we will fall short on my earlier predictions on revenues for 2008. But we will accelerate the improvement to the Company's bottom line and cash flows, which is much more important.

Making money and lessening our dependence on outside funding resources is obviously more important, and we took important steps in this process during the second quarter. Ultimately, this will help us grow more rapidly and in a healthier fashion
.

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Monday, July 28, 2008

Nighthawk Sets Record With Recent Purchase Order

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.

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Wednesday, March 05, 2008

Nighthawk Swoops Up Another Major Order

With oil flirting with all-time highs and inflation fears dragging the US Dollar to unprecedented lows while cost of living surges, technological solutions that help conserve both energy and money have never been more so timely.

The EIA projects that world energy consumption will rise nearly 60% from 2004 to 2030. During this time, the organization expects global use of petroleum and other liquid to grow from 83 million barrels oil equivalent per day to 118 million.

Demand Grows As Energy Prices Soar

So, clearly the need for solutions such as those offered by company's like Nighthawk Systems (OTCBB: NIHK), that are capable of turning virtually any electronic device off and on, is growing, seemingly by the day.

If the broader trends are not enough to convince you, the company's recent string of contracts should.

Another Record Order

NIHK announced a 485 unit CEO700 order today from the Public Works Commission ("PWC") of Fayetteville, NC. According the release, the order - which is expected to ship in 30 days - represents the largest initial order of CEO700's to date from a new customer

NIHK's 'bread and butter' remote control control business boasts a growing list of 50+ utility customers. After announcing the largest ever CEO700 order just a few months ago, it is very promising to see a record new customer order following along so quickly.

If you already know, the CEO700 gives electric utilities the ability to wirelessly disconnect and reconnect power to residential electric meters from a centralized location, improving customer service response times and saving the utility significant time and money over the traditional manual disconnect method that requires multiple truck rolls and field personnel (run-down courtesy of NIHK). Not a bad value-proposition in today's world. Eh?

2 Thriving Business Segments In 2 Thriving Markets

As I've mentioned in previous editions, NIHK's recently acquired set-top box business is expected to register $8M in 2008 revenues. It appears that NIHK more or less inherited a very positive relationship with a leading hospitality technology solutions provider with its purchase of the business.

Within the next few months, NIHK plans to have shipped about 4,700 set-top box units for the customer and seems optimistic that the orders will keep flowing for the foreseeable future.

All very promising given the fact that the aforementioned contracts alone hitting the books would equate to massive incremental revenue growth for the company. On an annualized basis nonetheless. Moreover, these are revenues from one single customer. The implications here are quite interesting if/when potential set-top box customer #1, #2, etc. emerge.

NIHK is showing more promise today than ever before in the more than two years that MSP has been covering the company. With two thriving business segments making documented success in two thriving markets (IPTV & M2M), we think that Nighthawk Systems Inc. is extremely well- positioned for growth in 2008 and beyond.

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Thursday, February 28, 2008

NIHK Out With Major News Today!

Nighthawk Systems Inc. (OTCBB: NIHK) is out with major news today.

The company recently received a 1,500 set-top box order and expects 2008 set-top box sales to surpass $8,000,000. For a company that logged less that $1M in revenues during the first three quarters of 2007, that figure is nothing to scoff at.


The order is from one of the world's largest hospitality broadband service providers and is a follow-up to a previously announced order for 4,200 units that NIHK has been shipping on for the past few months.

With the company's traditional remote disconnect business growing like never before and set-top box revenues expected in the $8M range for 2008, we could be looking at a seriously undervalued company here in the near future if everything goes as planned for management

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Wednesday, January 30, 2008

A Reason to Love Red Light Cameras

Nighthawk Systems Inc. (OTCBB: NIHK) continues to set the table for a feast in '08 while many other small-caps prepare for famish. Announcing today that they have entered into a burgeoning new market with a brand new, higher margin product, the hawk appears destined to soar in the coming months.

First and foremost, the company's traditional offering can help save time, money, and energy in virtually any application that utilizes an electronic device. The product is popular and is selling in droves. In an economy on a quest for value, NIHK's offering is not a bad value-proposition.

Diversifying Revenue Streams in 2008

Although deals with energy-related utilities have driven sales to record levels (Q3 sales were the best in 4 yrs.), NIHK's fast-growing offering has been adopted across a vast range of applications. From diesel generators for Verizon Wireless and the State of New Jersey, to exhaust fans at DaimlerChrysler's (NYSE: DCX) Trenton, Michigan engine plant, the company has made some very nice moves over the past year to expand out of its core niche.

This of course, is all in addition to logging their largest remote disconnect order ever and continuing to sign on and retain electrical utility customers at a record pace. Also, don't forget that NIHK recently purchased an IPTV set-top box business that brings with it just under $1M in sales which should hit the books in 2008 (½ came with the sale, about ½ came directly after). This number will grow with any additional orders.
Note: To put this into perspective, consider the fact that NIHK logged about $899,000 in revenues for ALL of 2006.

Back to Today's News:

The company announced today that its partnership with American Traffic Solutions, Inc. ("ATS") has led to an initial order of 600 Nighthawk wireless-control and reboot units. According to today's news release, NIHK has developed a new product line that meets the specific needs of its partner and brings with it higher returns than the company's traditional offering.

One thing that may go unnoticed to the un-trained eye is the fact that although it may be like comparing apples to oranges, this most recent order (600 units) is actually bigger than NIHK's previously stated, largest-ever remote disconnect order (500 units). Although I do not have any price point information, the sheer size of the initial order, coupled with the fact that NIHK has developed a stellar reputation for attracting, larger, repeat orders, have me very optimistic regarding the implications of this deal. On an even more positive note, management stated today that the product has applications in many industries outside of photo enforcement.

Great Read on ATS: "Nonstop growth helps traffic company accelerate"
http://www.azcentral.com/business/articles/0118biz-sr-ats0119-ON.html

More on ATS. . .

Based in Scottsdale, Arizona - ATS is a leading domestic player in the high potential photo traffic safety and enforcement solutions market. Dedicated to technological improvement (ATS was 17 yrs. early to market by some accounts) the company has brought on nearly 200 new employees over the past year in order to keep pace with industry growth and demand for its solutions.

Now battling neck and neck with Redflex Holdings (RDF.AX) - another potential NIHK customer - for domination of the US marketplace, ATS plans to integrate Nighthawk's wireless control system into their existing technology. By employing the Nighthawk wireless control module, the ATS system will have the ability to wirelessly access and control power to equipment at each site independently and simultaneously from a central source. This is another example of how NIHK's products help make their customer's more efficient.

The Low-Down on Photo Enforcement

With research indicating that there are more drivers on our roads than ever before and also that drivers, even those who admit to frequent speeding, think traffic enforcement is too lax (40% of a 2002 survey stated that there was too little enforcement of red light running and speeding), the need for automated enforcement solutions as a complement to traditional methods is paramount. In a testament to their effectiveness, a review of red light camera studies around the world concluded that cameras reduce red light violations by 40-50 percent and reduce injury crashes by 25-30 percent.

In response to these trends, cities and states around the nation have tested red light cameras with tremendous success and are increasingly adopting solutions to help make their communities safer. With photo enforcement solutions now proven to lead to safer driving habits, reduction in traffic crashes, hindrance of dangerous/aggressive driving - while saving lives and increasing police and public safety - widespread adoption is ramping up and ATS is helping to lead the way in North America.

To give you an idea of the value-add here: According to the World Report on Road Traffic Injury Prevention issued in 2004 by the Worth Health Organization and the World Bank "the benefits of speed cameras outweigh their costs by a three-to-one margin, without taking fine revenue into account" In addition, although it is a bit dated, the following tidbit of information exemplifies perfectly the need for automated traffic control systems: in 2000,
the cost of speeding related crashes in the U.S. was an estimated $40.4 billion, or $76,865 PER MINUTE!

With the majority of competition in the space coming from International counterparts (RedFlex Holdings and Gatsometer B.V. are two key players), ATS is rapidly emerging as a key player. Just to provide a point of reference, ATS reportedly now has about 700 cameras operating nationwide and 1,110 under contract while Redflex recently hit the milestone of 1,000 operating contracts back in November. So, clearly, ATS is kicking butt and taking names when it comes to its penetration of North American roadways.

Great Read on Red Light Camera Statistics

While many small-cap ventures flounder in the market, NIHK continues to cash in on its proven ability to develop products that save its customers time and money. Now partnered with the likes of Verizon Wireless, American Traffic Solutions, and American Messaging, NIHK targets a broader range of markets and applications than ever before with a seemingly constantly evolving offering. I like what I'm seeing out of the company and expect more good news to follow. Check back soon for updated coverage on NIHK and our opinion on why the company is definitely one to watch in the New Year
.

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Thursday, January 17, 2008

Nighthawk Gaining Notoriety

In the midst of my fishing for relevant information on the M2M industry, I first stumbled upon some very impressive analyst forecasts. As I scrolled down the Article however, realized that the first company name attached to the document was none other than Nighthawk Systems Inc. (OTCBB: NIHK).

This is great for NIHK from a business perspective. Being the featured company in a leading online periodical for a booming industry. With Berg Insight AB, http://www.berginsight.com/, projecting global wireless M2M modules shipments for utility meters to reach 4.5 million in 2011, up from and estimated 1.85 in 2007 and 1.55 in 2006, the future looks very bright for Nighthawk if they can stay in the limelight and keep making improvements to the current revenue run rate.

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NIHK Should Be Resilient In a Trying 2008

Given today's extremely uncertain economic climate, investors are paying closer attention to where they put their money than ever before. As inflation hits a 17- year high and everyday items such as gasoline, milk, and even beer chip away at a growing percentage of our paychecks, the search is on for stocks that will pull their weight in the New Year.

This year will have many opportunities fighting for their chance to decorate your stock ticker, but with the outlook for 2008 far more uncertain than that of 1998, it is important to do your research. This time of year, the consumer shifts focus financially and we should see some changes in the market.

Where, Oh Where, Do Your Dollars Go?

Already looking to be well-poised to perform in 2008 is Nighthawk Systems Inc. (OTCBB: NIHK) which we have been tracking for the better part of two years. Subscribers likely know more about NIHK than they want or need to but knowing your animal is vital when every investing dollar affects the bottom line more than ever.

Now boasting a pair of high-potential business segments rooted in two burgeoning markets M2M (machine-to-machine) and IPTV (Internet Protocol Television) - NIHK has positioned itself to cash in on a pair of major trends that should hold steady despite the ongoing economic slowdown. Haven't you heard? IPTV is the new satellite.

Nighthawk is Moving with the Market

With products and services that capitalize on both the world's need to conserve energy and the next step in the video signal revolution, Nighthawk has built a very solid business over the past few years. Among recent successes, NIHK has recently announced its best quarter in 4 years, the largest remote disconnect order in corporate history, and initial shipments from the newly-acquired IPTV set-top box business. So, clearly measurable progress is being made from an operational standpoint.

Today's news is excellent because it quite accurately exhibits Nighthawk's ability to turn first-time customers into long-term business partners. Nebraska Public Power District ("NPPD") has been working with NIHK for more than three years in effort to expand their remote disconnect initiative, just like many other energy-related utilities. With the technology age churning out revolutionary products seemingly daily, long standing customers in an industry like NIHK's is a testament, not only to their caliber of product, but to their staying power in the marketplace.

Make a Client vs. Keep a Client

If you're not seeing the trend here, check back through NIHK's string of press throughout '07. It's chock full of news regarding orders and more importantly re-orders from the likes of Verizon Wireless as well as numerous utilities throughout the country including El Paso Electric, Southwest Arkansas Electric Cooperative, and Cheyenne Light, Fuel & Power Company.

Nighthawk's ability to generate first-time and repeat business in such a rapid fashion has greatly accelerated its growth rate to date. This is evidenced by management stating that in Q3 was their best in 4 years and also that during the quarter they sold and produced more CEO700 whole house disconnect devices than in any quarter in its history. Please remember that this best quarter was without any IPTV sales (no shipments until Q4), which are now starting to provide a very nice boost to the already surging growth rate.

IPTV - The Video Revolution

In terms of consumer adoption, Internet Protocol Television (IPTV), viewed by many as the next step in the video revolution, is an industry set to explode. More specifically, analysts envision the market to house 50 million subscribers by '09 and be worth nearly $40 billion by '10. Although these may be optimistic industry outlooks, NIHK is already shipping set-top boxes to customers in effort to fulfill orders valued at just under $900,000. For a company that logged about that during '06, I like what I'm seeing from this newly acquired venture.

In regards to the M2M space, research firm IDATE forecasts the market to potentially reach $270 billion by 2010. While largely focused in the wonderful world of energy-related utilities, NIHK has sold horizontally through various alliances into applications such as traffic control, exhaust fan control, and many others. Since their products can essentially turn any electrical device on or off remotely, growth in the M2M space should translate into growth for NIHK, particularly as they strive to explore new applications for their products as well as alliances that help increase their brand recognition.

2008 is shaping up to be a year in which emerging small-cap ventures thrive due to their niche positions in resilient markets, while other not-so-lucky ventures fall by the wayside. Luckily, NIHK is strongly positioned in 2 resilient markets. With the stock now teetering on a bottom while showing some strong upwards momentum in recent days as the broader market gets crunched, Nighthawk Systems Inc. should be on your radar screen going forward if it isn't already.

Don't forget, the stock ran up to its 52-week high of $.24 last April on much weaker fundamentals and with nowhere near the growth potential currently being exhibited. So, we could be in for another bull run if growth continues at such a rapid pace.

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Tuesday, January 15, 2008

Solid News Out of NIHK

Nighthawk Systems Inc. (OTCBB: NIHK) shares appear to be reaching a bottom after being beat down considerably over the past three months and today’s news could be just what it takes to incite a move upwards.

Now competing in two burgeoning markets - M2M (machine-to-machine) and IPTV (Internet Protocol Television) – NIHK announced an initial order for their landmark CEO700 wireless disconnect units today from Central Hudson Gas & Electric. The new customer is a wholly-owned subsidiary of CH ENERGY GRP HLDG (NYSE:CHG), which logged just under $1 billion in 2006 revenues, serves more than 371,000 clients across the state of New York, and trades in the $40.00 range.

One thing that I like very much about today’s release is that NIHK was able to successfully customize their remote disconnect solution to meet the needs of a major utility. Over roughly the past year, Nighthawk has exhibited their dedication to becoming more of a flexible solutions provider as opposed to a box slinger, as I have mentioned previously.

This is great for the company because it helps build their reputation as a value-added partner. In my opinion a key attribute that potential customers, particularly energy-related utilities, are looking for in vendors these days as they delve deeper into the new world of smart metering and remote disconnect technologies.

What would you rather, somebody who hands you a box and tells you “here, use it” or a value added partner that evaluates your specific situation and molds a solution to your problem? It seems like a very simple choice and that electric utilities are increasingly making it in favor of NIHK.

Another thing that I find interesting about today’s release is that the company is gaining a major foothold in New York, a region striving to reduce energy consumption with major support from its government. With Governor Eliot Spitzer calling to reduce state resident’s energy bills through the implementation of smart metering technology, NIHK is positioning itself in a market with very high growth potential for its remote disconnect products.

http://readme.readmedia.com/news/show/Green-Response-to-Govs-2008-State-of-the-State-Address/34415

With NIHK recently announcing its best quarter in 4 years, the largest remote disconnect order in corporate history, and initial shipments from the newly-acquired IPTV set-top box business, we are very optimistic in regards to what the next few months hold for the company

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Friday, January 11, 2008

US Oil Bill Hits All Time High. Is This Just the Tip of the Iceberg?


Driving a 9.3% spike in the US trade deficit during November was a 16.3% increase in its foreign oil bill (US Commerce Department). This incline brings our tab to an all-time high of $34.4 billion. A number which should likely grow over the coming months as oil prices flirt with $100 on a per barrel basis.

On another bleak note, US consumer confidence hit all time low levels, as it is measured by the RBC Cash Index.

With the White House kicking around the idea of tax cuts, analysts believe that US consumers are indeed quite weary of what the near-term holds.

"People are anxious because everything sounds pretty awful these days," said Bill Cheney, chief economist at John Hancock Financial Services Group in a recent article issued by the associated press.

You Gotta Be In It To Win It!

While many investors have their hands on the panic button, ready to push it, now is definitely not the time to go hiding under a rock due to the uncertain economical climate we are currently being exposed to. In my opinion, now is the time to dig your heels in and put your money into both defensive investments and those that you feel may be least effected by a recession or at least a struggling economy.

From our small-cap portfolio, Marmion Industries Corp (OTCBB: MMIO), Nighthawk Systems Inc. (OTCBB: NIHK), and a newcomer, Legacy Systems Holding Inc. are all somewhat resistant to economic downturn because they serve markets that will thrive with or without a very stable economy.

NIHK's remote disconnect device business in gaining steam in the utility sector as energy providers look to cut costs and become more efficient.

MMIO, builds and installs HVAC systems for the petrochem industry as well as schools, municipalities, etc. Number one, growth in the petrochem space will continue. Number two, both the industrial and commercial segments must install new age ventilation systems that help conserve energy.

Legacy has developed a potentially breakthrough "green" clean wafer technology that is already gaining widespread recognition in the semiconductor industry.

Just a few ideas for the next few months folks. We'll be interviewing executives from these organizations as well, so please send over any suggested questions that you'd like to have answered and we'll do our best to hook you up.

Have a great weekend!!!

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Wednesday, December 05, 2007

Message From Nighthawk Systems CEO

Good morning!

The following release went out this morning an announces that we have received our largest single order for CEO700 whole house remote disconnect devices in our history! Back in May, we received our largest initial order ever from the Town of Smyrna, Delaware, and then in August we received our (then) largest single order from Avista Utilities.

Now the Town of Smyrna has topped that with an order for 500 units. So every few months we have been setting a record for the size of an order of CEO700’s, and I think there is a good chance that this trend will continue in early 2008 as new budget money becomes available. Smyrna has become a very good customer in a very short timeframe.

A new city ordinance goes into effect today that requires many customers and all new apartment/rental developments to install remote disconnect devices. That is GREAT news as I believe this most recent order is just part of a much larger overall need that Smyrna will have, as it is a growing area experiencing some rapid development.

They have told us that, based on their experience so far, they believe they can save substantial dollars using our devices that would otherwise be spent on additional personnel because of their growing customer base and customer service obligations.

This will serve as a fantastic case study for Nighthawk to use, and we certainly hope other municipalities will adopt similar ordinances. A precedent has certainly been set! For a look at a draft of the ordinance, you can go to:

http://www.smyrnadelaware.com/gov_notices/watsewelec.pdf.


Have a great day!

H. Douglas Saathoff

Chief Executive Officer

Nighthawk Systems, Inc.



Nighthawk Systems Receives Largest

Remote Disconnect Order in Company History


-- Newly Adopted Ordinance Expected to Spur Additional Orders--

SAN ANTONIO, TX – 12/5/07 – Nighthawk Systems, Inc. (OTC BB: NIHK), a leading provider of intelligent wireless power management and emergency notification solutions, announced today that it has received the largest single order for its CEO700 remote disconnect devices in its history from the Town of Smyrna, Delaware. Smyrna first ordered units from Nighthawk in May of this year, and has recently adopted an ordinance which will require certain customers and any newly constructed rental properties to install remote disconnect collars on meters. This latest order of 500 units represents the third order placed by Smyrna for remote disconnect units in 2007.

The CEO700 gives electric utilities the ability to remotely connect and disconnect power to residential electric meters on a moment’s notice, improving customer service response times and saving the utilities significant time and money compared to the traditional manual method that requires truck rolls and field personnel. By utilizing Nighthawk’s remote disconnect solution, Smyrna can avoid additional personnel costs typically associated with a growing utility customer base without sacrificing customer service.

H. Douglas Saathoff, Nighthawk’s Chief Executive Officer, commented, “Each successive quarter we’re getting larger orders from customers, which is obviously fantastic. I’m excited that use of our equipment over the past six months has proven to be sufficiently effective to support a new ordinance in Smyrna requiring use of remote disconnect collars. With the delivery of this order, Smyrna will now have in excess of 1,000 devices available for use, and we look forward to providing them with units going forward as their own customer base and service needs continue to grow.”

About Nighthawk Systems, Inc.

Nighthawk is a leading provider of intelligent wireless power control products that enable simultaneous activation or de-activation of multiple assets or systems on demand. Nighthawk's installed customer base includes major electric utilities, internet service providers and fire departments in over 40 states. Nighthawk also designs and manufactures an advanced line of set-top boxes that are utilized to deliver high-definition multi-media content and applications to the hospitality industry.

Individuals interested in Nighthawk Systems can sign up to receive email alerts by visiting the Company’s website at www.nighthawksystems.com.

Forward-looking statements
Statements contained in this release, which are not historical facts, including statements about plans and expectations regarding business areas and opportunities, acceptance of new or existing businesses, capital resources and future business or financial results are "forward-looking" statements. You should not place undue reliance on these forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, including, but not limited to, customer acceptance of our products, our ability to raise capital to fund our operations, our ability to develop and protect proprietary technology, government regulation, competition in our industry, general economic conditions and other risk factors which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in our expectations, except as required by law.

CONTACT:

Doug Saathoff

dsaathoff@nighthawksystems.com

(877) 7-NIGHTHAWK, Ext 701

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NightHawk Systems: Flying High Heading Into 2008

Nighthawk Systems Inc. (OTCBB: NIHK) may be my favorite small-cap pick for 2008. NIHK announced a major milestone today with a contract for the sale of a record number of their “bread and butter” CEO700 product.

With recent news indicating that NIHK is already shipping product to meet more than $800,000 worth of orders for its newly acquired IPTV set-top box business, record sales in from the traditional business have me quite bullish on the company’s future.

Today's Record Order Likely Not the Last From Smyrna

To make today’s news even more powerful, the 500 unit follow-up sale to the Town of Smyrna, Delaware is likely not the last to stem from the relationship. Smyrna plans to equip just about every residence in the town with remote disconnect units using Nighthawk products.

NIHK Products Help Conserve Energy In More Ways Than One.

From a macro perspective, this looks like the beginning of a trend towards electrical utilities mandating that each and every residence, particularly troubled accounts, are equipped with remote disconnect units. And Nighthawk products can remotely control these devices saving money on gas, personnel, and trips to the hospital for dog attacks.

As energy prices soar, this makes sense on so many levels.

From our perspective, we are now looking at a company that is just scratching the surface of two hot and emerging markets. With utilities striving harder than ever to reduce costs and the Internet emerging as a viable and dominant telecommunications medium, NIHK has positioned itself at the forefront of two potentially explosive opportunities.

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Thursday, November 29, 2007

Message From Nighthawk Systems CEO

Good morning!

I hope that everyone had a great Thanksgiving last week. The following announcement went out this morning and discusses the fact that we have started shipping our MediaPro IP3000 HD set-top boxes (“STB’s”) to our major hospitality customer.

This is significant because it starts the revenue stream and cash inflows from the STB business that we purchased about six weeks ago. We’ve got over $900,000 in orders in-house related to this business, so we’ll begin to see this turning to revenue in this current fourth quarter!

As I say in the release, our employees have worked very hard to re-kindle or establish relationships with vendors to get production going on the units in such a short timeframe. I’m obviously happy to start seeing some financial benefits of the STB business so quickly!

This release will also serve as a great marketing tool for us. We believe that we have the best high-definition STB on the market. As other potential customers see this release, it will validate for them that our units are being purchased and produced for use in some of the finest hotels in the U.S.

Have a great day!

Doug

H. Douglas Saathoff

Chief Executive Officer

Nighthawk Systems, Inc.

Nighthawk Systems Initiates Shipments of IPTV Set-Top Boxes

-- Units Feature MPEG-4 (H.264) High-Definition Technology--


SAN ANTONIO, TX - 11/29/07- Nighthawk Systems, Inc. (OTC BB: NIHK), a leading provider of intelligent wireless power management solutions and IP video set-top boxes, announced today it has initiated shipments of its MediaPro IP3000HD video set-top box units to a leading hospitality services provider, and expects to continue making regular shipments to the customer throughout the remainder of 2007. These shipments allow Nighthawk to begin recognizing revenues from the recently-acquired set-top box operation. Nighthawk had previously disclosed that it had assumed a backlog of approximately $400,000 in orders for the units when it acquired the IPTV set-top box operations of Eagle Broadband in October, and had received an additional order for approximately $480,000 of the units subsequent to making the acquisition.

The MediaPro IP3000HD is a high-definition set-top box with a compact footprint and quiet, fan-less design that delivers exceptional streaming video quality for both NTSC and PAL broadcast standards. It uses an advanced system-on-chip architecture including an integrated graphics accelerator and dedicated multimedia engines executing in parallel to deliver the highest performance 2D, 3D graphics and video capabilities with motion compensation for video playback. Capable of supporting a variety of leading middleware and video-on-demand systems, including Java Script capabilities, the MediaPro IP3000HD platform delivers the advanced content system security and digital rights management (DRM) needed by a wide variety of industries and markets. It supports both high definition MPEG-4 AVC (H.264) and MPEG-2 video standards.

H. Douglas Saathoff, Nighthawk’s CEO, commented, “I’m extremely pleased that we’ve already begun shipping products from our contract manufacturing facility overseas. Our employees have worked hard to establish new relationships with key vendors in a short timeframe in order to get this process started. We look forward to continual strengthening of these relationships with vendors, and further enhancement of the Nighthawk MediaPro brand within the hospitality marketplace.”

About Nighthawk Systems, Inc.

Nighthawk is a leading provider of intelligent wireless power control products that enable simultaneous activation or de-activation of multiple assets or systems on demand. Nighthawk's installed customer base includes major electric utilities, internet providers and fire departments in over 40 states. Nighthawk also designs and manufactures an advanced line of set-top boxes that are utilized to deliver high-definition multi-media content and applications to the hospitality industry.

Individuals interested in Nighthawk Systems can sign up to receive email alerts by visiting the Company’s website at www.nighthawksystems.com.

Forward-looking statements
Statements contained in this release, which are not historical facts, including statements about plans and expectations regarding business areas and opportunities, acceptance of new or existing businesses, capital resources and future business or financial results are "forward-looking" statements. You should not place undue reliance on these forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, including, but not limited to, customer acceptance of our products, our ability to raise capital to fund our operations, our ability to develop and protect proprietary technology, government regulation, competition in our industry, general economic conditions and other risk factors which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in our expectations, except as required by law.

CONTACT:

Doug Saathoff

dsaathoff@nighthawksystems.com

(877) 7-NIGHTHAWK, Ext 701

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Friday, October 26, 2007

Fire in the West

Unless you've been hiding under a rock for the past few days, you are aware of the ongoing wildfire situation in Southern California.

45 people have been injured, 5 people have been killed, 500,000 homes were evacuated and so far 1500 homes have been destroyed. While our doors were shut due to a mandatory evacuation earlier this week and the phone lines were temporarily down, things are back to normal here at MSP and everyone here and their families were fortunate enough to come through this disaster unscathed. Unfortunately that is not the case for the hundreds of thousands still evacuated and the many families returning to rubble where their homes once stood.

We'd like to start off this edition by saying that our thoughts and prayers are with all of those affected by the recent catastrophe and are confident that, through the generosity of Americans, these communities will soon be pieced back together again.

CPNE - To Split or Not to Split

So, in the spirit of dusting off the computers and catching up on lost time, we thought we would touch on a few topics that we felt would wrap up the week on a strong note.

After taking investors on a tumultuous ride that saw share price soar upwards into the $3.50 range from under a quarter and then free fall all the way down below a dollar where it sits today, Commerce Planet Inc. (OTCBB: CPNE) announced plans to apply for listing on a National Exchange earlier in the week.

While the move is very positive for the company, it may not be quite so rosy for most current shareholders. CPNE meets or exceeds every possible requirement criteria to trade on a senior exchange, except for one, share price!

So, the obvious move is a reverse split. In my experience, reverse splits carry with them a very negative connotation. This is even truer over the near-term following the split. Long term, those willing to stay on board could be rewarded greatly, but if my dollar today is worth a quarter tomorrow, how can that be positive for me economically until my dollar rises back to its original value? Despite this being a risky move on CPNE's part, we think this company has the wherewithal to execute it successfully.

For long-term holders, this is what we call crunch time. It's time to weigh the pros and cons of sticking it out for a home run or taking some ducats off the table. We have long been believers in CPNE and we still think this company is going to become one of our diamonds in the rough.

We'd love to hear your thoughts and our blog represents a great forum for voicing your opinion.

ATSI Communications: Stellar FY2007

ATSI Communications Inc. (OTCBB: ATSX), one of the most promising companies in our small-cap portfolio, continues to impress the investment community with its improving financials. Management announced last week that revenues for the 4th quarter trumped those of Q3 by almost $2,000,000 and towered over Q4 '06 by nearly 90%. ATSI has now logged 12 consecutive quarters of record revenues, 5 consecutive quarters of positive cash flow from operations and 3 consecutive quarters of net positive earnings per share.

The real game breaker here at this point in time appears to be ATSI's flare for international business. Since the majority of VoIP growth is anticipated to occur in markets outside of the U.S. over the next five years, The Company's ability to establish business relationships with international telecommunications players, including the Mexican government and PCCW Ltd, continues to facilitate an improving financial situation for the company.

ATSI is entrenched in Mexico, the world's number one user of voice traffic along with the U.S., and a $2 billion+ telecommunications market. This has been a key factor driving growth to current levels. ATSI's success in Mexico is facilitated by its (49%) interest of a subsidiary in Mexico, ATSI Communications, S.A. de C.V - that operates under a 30-year government issued telecommunications license similar to the license owned by AT&T's subsidiary in Mexico. Since the Mexican government has a well- documented history of being stringent in its introduction of telecommunications competition and has constructed significant roadblocks to new market entrants, possession of a long-term concession license in the country should be viewed as a major advantage for ATSI.

At a price of just under $.30, we are very bullish on ATSI Communication's potential over the next 12 months.

Nighthawk - Highest Revenues in 4 Years

Nighthawk Systems Inc. (OTCBB: NIHK) provided guidance Wednesday on 3rd quarter earnings that marked the company's highest revenues in the past 4 years. With revenues improving on both quarter-over-quarter and sequential basis, investors embraced the guidance warmly as the stock traded up over 11% to .1140 on volume exceeding 5,000,000 shares. As of 11:00 PST on Thursday morning, share price has held stable. Could we be looking at a new bottom?

Since NIHK recently acquired a high potential IPTV set-top box business and management has stated publicly that revenues for the first nine months of 2007 already exceed those of calendar year 2006, and also that future IPTV related sales could accelerate near-term revenue growth rates by a multiple of two, the market may have awoken to some extent and started pricing that potential into shares. Just a thought. . .

Marmion Industries: Almost Profitable?

Marmion Industries Corporation (OTCBB: MMIO) traded incredibly on Thursday with no news. The stock gained nearly 30% on volume exceeding 4,000,000 shares. For those of you still scratching your head, we thought you might appreciate a tidbit of information we stumbled upon from loyal subscribers. The fact that the market at large is becoming increasingly aware of MMIO's progress may help explain the surge in activity lately.

When you cut out the company's current financing agreement, which is essential in the construction of a new facility that will sustain current growth and allow for higher volume production, MMIO is pretty darn close - if not already - profitable. Which is more than General Motors can say for itself!

As a public company breaks into the market, the amount of capital necessary can often be the company's undoing. This begets the necessity for financing - often an even greater cause of demise. For a small cap company, climbing its way to profitability means chewing through large amounts of debt just to start at ground zero. Knowing the nuances of the small cap industry is vital to understanding how to invest in it wisely. That being said, profitability is not only a rarely achieved

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Thursday, October 25, 2007

Motorola Expects Big Things From IPTV Market

Motorola Expects Big Things from IPTV Market

It appears that Nighthawk Systems Inc. (OTCBB: NIHK) picked the right market, particularly if IPTV expert Motorola is on point with recent estimates on industry growth.

Motorola expects that:

The residential IPTV subscriber base to balloon from nearly 4.6 at the end of ’06 to nearly 60 million by the end of 2011; and
Shipments of IPTV set-top boxes to reach 7 million in 2007 and grow to more than 20 million by the end of 2011.

Now coming to market with an industry leading M2M and IPTV products, NIHK is beginning to gain some serious traction in two of the world’s hottest markets.

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Wednesday, October 24, 2007

Another Record Quarter On The Horizon For NIHK

Nighthawk Systems Inc. (OTCBB: NIHK) provided guidance today on rosy 3rd quarter earnings today that saw revenues improve on the $899,000 logged during Q2 and increase nearly 55% over Q3 '06.

Investors embraced the news with open arms as the stock traded up over 11% to .1140 on volume exceeding 5,000,000 shares. With its traditional business making record quarterly growth seem somewhat commonplace recently, adding on the high potential IPTV set-top box biz provides a new level of hope for the company bringing annual revenues into the double digit million range.

For the near to mid-term, the IPTV business may prove to be the icing on the cake for NIHK. With management stating that revenues for the first nine months of 2007 already exceed those of calendar year 2006, I'd say things were chugging along just fine prior to the recent acquisition.

CEO Doug Saathoff states in today's release that the IPTV biz could possibly accelerate near-term revenue growth rates by a multiple of two. If that's the case, the market may have awoken to some extent today and started pricing that potential into shares. Just a thought.

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Thursday, October 18, 2007

Volume Flares Up on Micro Caps

Lots of Action in our Micro Cap World This Week!

Over the weekly hump and it has been a busy week thus far. Although we typically focus on just one company in each edition of our newsletter, an overflow of positive news from our portfolio companies this week has forced us to approach things a bit differently today and bring you our three immediate-term growth front runners.

Before we get into today's news, we thought we'd mention that all of our previous newsletter editions and additional commentary can be found on the MicroStockProfit Blog.

EXCS Sales up Nearly 60%


Execute Sports Inc. (OTCBB: EXCS) announced this morning that overall, year-to-date sales have increased nearly 55% over 2006. The jump from $935,541.31 logged in the first three quarters of 2006 to $1,444,743.67 in 2007 is probably the premier indicator that EXCS has embarked on a new era of growth. Record sales levels also exhibit the company's unique future potential with former Body Glove executive Celeste Berouty situated as President.

Check out our Blog entry from Tuesday for a rundown of exactly why I think this stock has to perform better over the next three to six months.





The market has reacted extremely well to Tuesday's potential $6,000,000 announcement out of Nighthawk Systems Inc. (OTCBB: NIHK) and should grow even more fond of the stock after today's news highlighting an order worth $488,050 - or about 43% more than total second quarter revenues - from a major customer.

NIHK's decision to purchase the IPTV set-top box business assets of Eagle Broadband was a pretty slick move, particularly since the boxes are already generating sales for the company just days after the business segment was acquired.

Nighthawk's current backorder of more than $900,000 exceeds the company's revenues for the entire 2006 fiscal year and exemplifies the forward direction that operations are moving in. Sure I'd like to see the bottom line tidied up a bit, but then again, if they were showing a profit, I'm thinking we'd be around $0.50 or higher versus $0.10. Don't forget that this stock


Marmion Industries Corporation (OTCBB: MMIO) continues to execute on previously announced contracts. After a press release announcing a letter of intent last July, management noted today that they have received a work release notice for a change order valued at nearly $100,000 for a project at the Debakey High School in Houston, Texas.

MMIO also has an additional 20 or so add- ons pending approval which will increase the project's ticket, which I estimate to be worth a hair under $1,000,000.

Today's news is especially great in my opinion because it exhibits management's ability to deliver on contracts. It also helps to solidify Marmion's position in the commercial HVAC market which acts as a pretty nice complement to the industrial business. With ARC Advisory Group forecasting the worldwide market for HVAC control systems to continue growing at a compounded annual growth rate (CAGR) of nearly 4% over the next five years, growing from $10 billion in 2006 to nearly $13 billion in 2011; MMIO has a lot of room to grow.

Management is ramping up sales/marketing efforts and for the first time and pursuing business rather than simply relying of word of mouth to drive revenues. Simply put, I expect monumental growth for the company going forward. With net income of $212,000, as of their last reporting period, continued near-term sales growth, such as that being exhibited recently, could turn this thing around in a major way.

The foundation is in place for EXCS, NIHK, and MMIO and going forward all of these companies seem to do nothing but grow and improve. So why the poor stock performance? Obviously, value here is just increasing. Yet the market seems to waiver in it's faith daily. Eventually, these companies will get their legs in the market and today's prices will be yesterday's news. In the meantime, day traders and long term investors alike should find some good entry points this week.

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Tuesday, October 16, 2007

Sales Keep Heading Up Up Up!




Yesterday was a good day for MicroStockProfit subscribers. If you jumped on our Monday morning pre-market Nighthawk Systems (OTCBB: NIHK) alert, you likely got a nice investment gain to go with your frenzied Monday morning. Closing Friday at $0.08, NIHK was on our radar for a strong following week in the market. Hopefully, many of you got to pull a little off the table as it traded up on HUGE volume yesterday morning and closed at $0.106 (just a hair off its intraday high of $0.107) - a gain of over 32%! Not a bad way to kick off your week.

Now on with the show. . .



Over the past year, we have seen quite a bit out of Execute Sports Inc. (OTCBB: EXCS). The company has emerged from virtual upheaval and is reaching milestone after the milestone. Today, EXCS is out with yet another positive news release that should have investors and shareholders excited for the future of the rapidly emerging water sports player. According to EXCS, preliminary orders for 2008 OEM produced Life Vests will increase by nearly 61% over 2007 production.

While the 61% figure on its own doesn't do a heck of a lot for us, after peeling through a number of recent corporate announcements, I stumbled upon news dated 4/17/07" Execute Sports, Inc. Announces 2007 OEM Sales Rapidly Approaching $1 Million"

So applying a little "back of the napkin" math and making the assumption that overall OEM sales are growing at roughly the same rate as OEM life vests, pre-orders for 2008, which hasn't even technically begun yet, equate to nearly $1,600,000 in 2008 revenues. Even if life vest sales contribute only 30% to overall OEM sales and this is the only private label OEM product experiencing such tremendous growth, we're still looking at a very healthy increase since these are 2008 orders are being logged with about 2.5 months left in 2007.

For a company that logged only $2,000,000 in 2006 revenues, this is a major deal - particularly since OEM/Private label sales make up only a small portion of the company's overall sales and we are only speaking in terms of preliminary orders. Actual 2008 OEM sales will likely be much higher given the many months that Execute now has to log more orders.


Sometimes, a list is the best way to get a handle on company details. Let's take a look at some of the positive forces that are currently working in sync to foster a positive future for Execute Sports. Here are a few of my favorites in non-chronological order.

1. The Chart - EXCS shares have found support in the $.02 range and investors don't seem at all willing to part with the stock at lower prices. It appears that we have reached a bottom, and judging by the ongoing improvements being made on behalf of management, it doesn't seem like we can stay parked here forever. The company is simply performing too solidly, both from a financial and operational perspective for that to happen.

2. Record Sales - After announcing all-time record high sales for the second quarter back in July, Execute has issued a string of very positive corporate announcements regarding many aspects of their stellar sales performance. As of 9/27/07, Year-to-date internet sales had increased 38% over 2006 and Execute branded products were accounting for nearly ½ of ALL online sales in each of their core product lines. This rapid growth (online sales just started in March of '06) has been facilitated through management's ability to get their products online with leading retailers including: The Sports Authority, Dick's Sporting Goods, Joe's Outdoors, Sport Chalet, Modell's and MC Sports.

3. Recent $5,000,000 Sugar Sand Boat Acquisition - By purchasing Sugar Sand, Execute, recognizes the benefits of both a cash influx of $7-10 million during year one and the addition of a complementary brand. U.S. law stipulates that all recreational boats must carry one wearable PFD for each person aboard and that each passenger under 12 years of age must wear a flotation device at all times. Essentially, for every Sugar Sand jet boat that is sold, the company has the opportunity to sell a few additional PFDs. In addition, Sugar Sand has developed a very strong dealer/distributor network to which Execute can pitch its brand to for the first time. This move should also provide the cash and equity necessary to fund further growth through acquisition. How could management possibly pass this deal up?

4. Audited Financials Improving by almost every Conceivable Metric - The improvement to both revenue and gross profit over the trailing three quarters is a direct indication that management has got its act together and is ready to move toward profitability. Operating income improved during the second quarter over the previous reporting period and SG&A expenses stayed flat despite substantial revenue growth (44%). Simply put, the corporate re- organizati