Friday, 25 January 2008

AeroMechanical's Good/Bad Day

When the markets opened January 25th, investors were elbowed with an AeroMechanical (AMA) press release revealing that the United States Patent Office was reviewing AMA's patent.

That review was prompted by a request for same from a competitor, Star Navigation Systems Group (Star.)
That was the bad news.

Please click here to view the news release.

Hours later, some good news followed.

Please click here to view this latter news release.

The good news came in the form of Transport Canada approval to install AMA's breakthrough technology in the business aviation world - the first aviation authority approval AMA has received for that lucrative area.
Transport Canada's Supplemental Type Certificate (STC) covers three different models of the state-of-the-art Hawker Beechcraft business jets.

But as the day progressed, share prices dipped slightly.

AMA shares weren't the only small cap to suffer in that mixed market but an unbiased observer could conclude the bad news outweighed the good.

Nevertheless, AMA's Washington, DC -headquartered lawyers, Paul, Hastings, Janofsky and Walker, aren't fussed about the Patent Office's decision to review AMA's patent.

A senior lawyer stated that the granting of a review came as no surprise given that the Patent Office, "usually errs on the side of caution in these matters."

Thus the only way for the U.S. Patent Office to thoroughly determine whether there is an issue -or not - is to review the patents and that could take between two months to two years.
It's a long wait.

But AMA Chairman and CEO Bill Tempany stated he is confident that AMA will win the day.
And the silver lining on this otherwise dark cloud is that with a positive outcome in the review, that will strengthen AMA's hand should another competitor pop up its head to allege patent issues.

In the meantime, Mr. Tempany said that with over 26 customers under AMA's belt, his staff is going full tilt to keep bumping that already impressive number up.

"We have never seen Star competing with us where it really counts - with a viable product in the marketplace," Mr. Tempany said in an interview.