American Electric Technologies, Inc.

Company Name: American Electric Technologies, Inc.
Stock Market: NASDAQ (AETI)
Industry Sector: Sheet Metal Work
Yearly Revenue: $55.7 million
Operating Income: $1.7 million (loss)
Net Income: $0.6 million
Total Assets: $36.3 million

Key People: Arthur G. Dauber (Pres., CEO and Chairman)
Headquarters Address: 6410 Long Dr. Houston, TX 77087, United States
Number of Employees: 569
Website Address: www.aeti.com

Company Overview

American Electric Technologies, Inc (“AETI”) is the primary global provider to the traditional and alternative energy industries of power delivery services and products. The company has been providing electrical products and services with high quality for more than 60 years. Its customers involve global offshore companies in oil and gas exploration, production, pipelines, oil refineries, power generation, and steel industries in the Gulf Coast area. AETI has facilities in Texas, Mississippi, China and Singapore and, through these, the company is qualified to serve worldwide power distribution and control needs. Its power delivery solutions involve M&I switchgear, power control rooms, AC and DC variable speed drives, and computer-based control and automation systems for power management.

In 1984, the current executive officers acquired the company, and after two years, opened the Houston manufacturing facility.

There was an announcement of the formation of the company’s first international operation in 1994 through the formation of a joint venture with Oakwell Industries of Singapore. This was to focus on marine and offshore applications in Singapore and M&I Electric Far East PTE Ltd., a Southeast Asia market.

In 1995, the company built up traditional switchgear lines and presented its very first digital DC drive product.

In 2002, AETI announced its new digital AC drive product effective for drilling applications.

Subsequently, the company acquired Contec Electric’s assets and made South Coast Electric in Bay St. Louis, Mississippi. This was to offer service to the marine and vessel customers in Alabama and Louisiana, Mississippi markets.

In 2004, through the acquisition of the assets of the leading DC drive manufacturer, Hill Hayes, the comapny expanded its drive technology product portfolio.

In 2006, AETI introduced AC variable frequency drive effective for space-constrained marine markets. AETI, with joint venture Bomco, announced its international expansion plans to form BOMAY to focus on production, sales and service for the rapid growth of oil and gas markets in China, and to provide sourcing capabilities for the international projects.

AETI was incorporated on October 21, 1996, under the name American Access Technologies, Inc. On May 15, 2007, M&I Electric Industries, Inc. and American Access Technologies, Inc., which is trading on the NASDAQ Capital Market under the symbol AATK, completed their merger agreement, then changed their name to American Electric Technologies, Inc. with the symbol “AETI.”

Current Financial Overview

he company has three operating segments: Technical Products and Services (TP&S), Electrical and Instrumentation Construction (E&I) and American Access (AAT). AETI’s sales increased by $10.2 million in 2007 due to the three segments’ revenues. E&I increased by $7.8 million and the acquisition of AAT cost $5.4 million. TP&S decreased by $2.9 million which occurred prior to the beginning of the Chinese joint venture and due to the $6 million sales in 2006 that did not recur.