Tag - Apsg

Applied Signal Technology, Inc. (Nasdaq: APSG), the Sunnyvale, Calif.-based developer of digital intelligence, security and reconnaissance systems, is well positioned to serve government security needs, executives said on a Tuesday evening.

“We don’t see changes in demand in the foreseeable future,” CEO Gary Yancey said on the call. “There is a high government demand for intelligence, surveillance and reconnaissance products due to the global war on terror.”

There is a slow but steady demand in terms of growth, and investors will see a cash flow in 2008 similar to 2007, he said.

Yancey announced the company’s wireless products division secured a $7 million contract with a government agency that will be realized in the third quarter ending July 28. Due to security concerns, Yancey would not disclose which agency received the contract.

Applied Signal Technology is also being looked at by two large government agencies for a data mining contract, Yancey said. However, the contract probably won’t be awarded until 2008, he said.

The company announced Tuesday afternoon $41 million in revenue for the second quarter ended May 4, down from $43 million a year before. Applied Signal reported a $1.6 million second-quarter profit, or $0.13 a share, up from $1.5 million, or $0.13 a share, in the same period of 2006.