Princeton Security Technology
CEO: Juhani Taskinen
Juan: Good day from Wall Street. This is Juan Costello, senior analyst at the Wall Street Reporter, and joining us today is Juhani Taskinen, the CEO for Princeton Security Technology. The company trades on the Bulletin Board and their ticker symbol is PSGY. They are a supplier of x-ray and gamma ray detectors. Thanks for joining us today, Juhani.
Juhani: Thank you for the opportunity, Juan.
Juan: Great! Now starting off, talk about–you issued your preliminary Q3 results. What were some of the drivers there?
Juhani: Yes. I would go back a little bit last year. About mid last year, 2010, we basically–we had our issues and we were able to turn the company profitable because of the changes in the basic business we made. We got more focused and now the past 5 quarters, you can see that we’ve been posting profitable results every quarter and you can also see the growth. So we have had profitable growth. That is our basically our key–I would say that’s our focus. What we’ve been doing here, we’ve been just generating more sales with our basic products. We have more customers. We have more distributors, reps and we’ve been selling our equipment and products more both domestic and international.
Juan: Well, great! What are some of the trends right now as far as PGT Technology and how well positioned is the company to capitalize on them?
Juhani: At this moment we are very competitive in radio isotope identifier field because our product technology-wise, is very good and, of course, pricing-wise, we are very competitive. We’ve been able to increase our sales and sales effort in this field globally and that has really helped us a lot this year and also we hope that will help next year as well.
Juan: Great. So what are some of the markets into which the company–who are some of your client and where can we find your products?
Juhani: We have basically 2 types of customers. The first one and the biggest one is the entities/clients within the homeland security market and we’ve been focusing equipment for the homeland security meaning first responders, customs, DOE customers, US military, etc. So we’ve been very well positioned– we are very well positioned within these types of customers. The second customer segment is there was a nuclear crisis in Japan and that there needs to be monitoring of radioactive isotopes in that area and that’s been going in the last–I would say the last 6 months as well so we basically have kind of radiations/nuclear power type of customers.
Juan: What would you say are some of the factors that makes Princeton unique from some of the other players in the sector?
Juhani: I would say that we really do have a good research and development. We put enough money–I don’t know if you can say enough but whatever resources we have, we invest in our R&D meaning we will get new products and we only have about, I think, 17 employees right now. We have really good employees here in Princeton and this focus sector where we are in, we know what we’re doing and customer base, our clients, they know us so we will have repeated customers. That’s where our sales go. We don’t have to look for the new customers for every single order. However, of course we do. But we have repeated customers coming back so it means we have brand name recognition within the industry.
Juan: Great! So perhaps you could walk us through you background and experience, Juhani, and talk a little bit about the management there.
Juhani: I have a background in electronics or communication business. I used to run a division within Nokia Corporation where we had global sales research and development, manufacturing, etc. I had some financial institution background thereafter as well. I’ve been with smaller technology companies and it almost seems like every single company has similar kinds of challenges. I’m very familiar with different technologies so this technology is very special and therefore we also do have a management team. We have management team which understands this industry very well. We have–I would say that our management team consists of vice president of R&D, vice president of operations vice president of sales and development, vice president of marketing as well as the financial officer. So we have a good management in place.
Juan: Well, great! So what are some of the goals and milestones there that you and the team are hoping to accomplish over the course of the next year?
Juhani: Next year? Very simply I would say we need to continue what we’ve been doing. We need to grow and we need to have profit. We’ve been basically shooting for roughly 50% or more growth rate and we’ve been posting about 10% in profit which is really good for a small company, as well as investing money in R&D. Also another goal is we really don’t have any debt so financially we’re looking to stay independent and stay financially in good shape. Ultimately, one goal is, and people might argue or institutions may like or may not like it, but we would like to start paying dividends as well.
Juan: Well, great! In terms of investors in the financial community, Juhani, do you believe that the PSGY story and your message and the company’s upside are completely understood and appreciated by them and if not, what do you wish investors better understood about the company?
Juhani: I think it’s very difficult to convey the message that we are a small company. However, we have extremely good products, technology and we’re competing billion-dollar corporations but we are doing very well. I would like the investors to understand that. Then the second thing is I would like to point out that we could not grow and we could not be profitable–I think that is very important for investors to understand that we could not continue to be profitable and we want to grow and that will be really important for investors to understand or to let them know that.
Juan: Well, great! So once again, joining us today is Juhani Taskinen, the CEO for Princeton Security Technology. The company trades on the Bulletin Board and their ticker symbol is PSGY, currently trading at $0.20 a share. The market cap is north of $2.8 million. Before we conclude, Juhani, to recap some of your key points, why do you believe investors should consider the company as a good investment opportunity today?
Juhani: Because if you look at–the share price is $0.23 per share. It’s extremely low considering the P/E ratio and usually companies are valued by P/E ratio. Small technology companies normally have 20, 25 P/E ratios or higher. So just considering the financial indicators, there is a clear opportunity with our stock and we’ve been also able to generate a little bit more liquidity so we would welcome more investors and institutions to join because there’s more liquidity and there’s a great opportunity here.
Juan: Well, we certainly look forward to continuing to track the company’s growth and report on your upcoming progress and I’d like to thank you for taking the time to join us today, Juhani, and update investors on Princeton Security Technology.
Juhani: Thank you very much, Juan, for this opportunity and we will keep the dialogue going. Thank you.