Company Much Branch Out

Recently, I told you about a really innovative American company that’s revolutionizing the car seat business. Now, in most luxury cars or trucks, you can not only get heated seats, but also cooling seats for those really hot days.

If you’ve ever had a leather interior in your vehicle, you know what it’s like in both the cold and the heat.

This revolutionary small company is called Amerigon Inc. (NASDAQ/SC/ARGN). Founded in 1991 and based in Dearborn, Michigan, Amerigon’s main product offering is called the “Climate Control Seat” or CCS. The equipment uses a proprietary thermoelectric device which provides heating and cooling for automotive seat occupants. The company is also developing other applications based on this technology.

In its most recent reporting period, the second quarter of 2006, the company generated revenues of $12.4 million, up substantially from revenues of $8.6 million generated in the second quarter of 2005. Amerigon’s revenue growth during the second quarter was mainly due to higher volume shipments of the company’s CCS system in the Lincoln Zephyr, Buick Lucerne, and the redesigned Cadillac Escalade, Cadillac Escalade EXT, and Escalade ESV.

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Recently, the company confirmed its previous guidance, with revenues expected to grow by approximately 30% in fiscal 2006, along with solid profitability. Currently, the company expects fiscal 2007 to deliver between 15% and 20% in revenue growth.

When you consider a company like Amerigon, you really have to way the pros and cons of it being a “one product” wonder. Assuredly, competition will enter the marketplace.

At this point, it is up to Amerigon to use its proprietary cooling and heating technology to branch out into other applications. If it can do this, then the stock should continue to be a success over the next several years.