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Allied Motion Technologies Inc. (AMOT): An Old Company with New Technologies

Allied Motion Technologies (AMOT) is a maker of motion control products such as brushless and brush direct-current (DC) motors, drives, and control electronics. Customers of Allied Motion Technologies include companies from the semiconductor manufacturing, industrial automation, medical equipment, and military and aerospace markets. The company also manufactures optical encoders used to measure rotational and linear movements of parts in diverse applications, such as printers, sorting machinery, machine tools, robots, medical equipment and tunable lasers.

Allied Motion Technologies also makes spectrum analyzers for use in the aerospace and defense, industrial, computer peripheral manufacturing, medical and telecommunications markets. The Colorado-based company distributes its products through its sales force, independent sales representatives, agents, and distributors primarily in the United States, Canada, and Europe. The company has manufacturing facilities in California, Michigan, New York, Oklahoma, Eastern Europe and China.

Competitors to Allied Motion include Axsys Technologies Inc., Dynamics Research Corp. and privately held Custom Sensors & Technologies, Inc. Allied Motion is the smallest of these companies, but has the lowest price-to-earnings ratio at 12.5 and the second highest net income of the group. Company insiders own 28 percent of the shares and 13 institutions own another 13 percent. Institutions holding Allied Motion shares include Axa, Lazard, Vanguard, Northern Trust and Westfield Capital Management.

Last month, the company said it realized a 188 percent increase in net income for the second quarter ended June 30, 2008 with net income of $1 million or $.13 per diluted share compared to $347,000 or $.05 per diluted share for the same period last year. Sales for the quarter increased 15 percent to $23.5 million compared to $20.4 million last year. Allied Motion is also currently holding a record order backlog of $32.3 million.

Shares of Allied Motion closed yesterday at $5.52. They have traded between $4.06 and $5.90 over the past 52 weeks. The company has a market capitalization of $40.2 million.

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