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EMS Technologies Inc. (ELMG) Derives Business Strength from Client Integrated Organization Structure

A technical moat is a necessary but not an adequate means of sustainable competition in the Electronic Instruments & Controls Industry. Engineering excellence must be backed by management competence. This small capital stock derives strength from its organizational structure. The Company is able to address the custom needs of a variety of government and business customers. Some of these operate globally and need to be in constant touch with each other, while others work out of a single location. Regardless of the situation, mobile and wireless communications matter to all modern organizations.

Aerospace, defense, emergency management, and real-time communications with remote units in harsh conditions are the typical kinds of essential services which this company provides for its clients. Aircraft and ground vehicles which move at high speeds can use this company’s products and systems to stay in touch with base controllers.

Operating Income has grown annually by 19% during the last quarter of 2007. Major commercial airlines continued to develop the company’s systems for providing passengers with email and voice communication services in-flight. This is a high growth area with pressing demand from travelers who need to use the Internet during flight. NATO has renewed its contract for network services from the firm. The company has also won new business from Indonesia to help in emergency operations after natural disasters. EMS Technologies appears on course to continue its impressive business growth during the last two years.

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