The real story!No doubt ATQ is in a challenging sector, at a challenging time, particularly because of currency issues. What is intriguing to me is that seemingly very large companies are entrusting ATQ with something that is critically important, manufacturing of their original equipment. These major companies seem to think that ATQ will be around for some time because it would be disastorous for them to have a manufacturer of essential components for their products shut down. It takes time to ramp up manufacture, 4 - 6 months I understand to get tooling and other aspects of manufacturing lined up. Yesterday's announcement described the customer as a "multinational original equipment manufacturer ("OEM") of industrial automation products" and today's announcement involves a OEM deal with a medical device manufacturer.
What I infer from all this is that ATQ's services are sufficiently compelling that it is being increasingly selected for critically important manufacturing despite its struggles on the balance sheet. I have little doubt that a multi-national company is not going into an essential (key) manufacturing contract arrangement without being fully cognizant of ATQ's financial position. So while ATQ is confronting serious challenges, I am comfortable that ATQ has established itself as an exceptional manufacturer. Hopefully, that will attract a sufficient customer base to give the company the economy of scale necessary to move into the black. Implicit in what I say is that I think the company has done a great job on the assembly line, quality control and efficiency ends. Hopefully, it can also, buttressed with these recent significant wins, ramp up sales.