Sometimes there are one-product companies that turn out to be great successes. One such company I found several years ago is Amerigon Incorporated (NASDAQ/ARGN).
This company’s been mentioned a number of times in our publications. Based in Dearborn, Michigan, Amerigon sells its proprietary “Climate Control Seat” (CCS) product for sale to automotive and truck original equipment manufacturers (OEMs).
Amerigon’s CCS product is designed to provide cooling and heating to seat occupants through an active thermoelectric-based temperature management system. The company is also developing more efficient thermoelectric devices (TED) with twice the efficiency of current equipment.
My father has this system in his vehicle and the truth about the system is that it works extremely well. You get heated seats when it’s cold out and you get cooling seats when it’s hot out. It’s like a small fan blowing gently on your back while driving. It’s a luxury no doubt, but it really does work.
Recently, Amerigon reported excellent financial growth in its third quarter and nine-month periods of 2007. According to the company, its revenues for the third quarter grew to almost sixteen million dollars, up from under just thirteen million dollars, while revenues for the nine-month period grew to around forty-seven million dollars, up from revenues of almost thirty-six million dollars.
Net income growth was the big story in the third quarter, growing to $3.1 million, or $0.13 per diluted share, as compared with net income of $900,000, or $0.04 per diluted share, in the comparable quarter. For the nine-month period, net income was $5.6 million, or $0.25 per diluted share, as compared with net income of $2.5 million, or $0.11 per diluted share, in the comparable nine-month quarter.
Amerigon confirmed its previous guidance at the high end of the range, with revenue growth expected to be between 30% and 40% with increased profitability.
Amerigon had a difficult time early in its life. When you’re a one- product company, it’s difficult to establish the momentum in your business to be successful. Amerigon honed its business plan and stuck with its product and now the company is a great success operationally and on the stock market. What a great example of a business success story.