TPCS – The Story Continues

The below update to our previous blog post on TPCS was provided anonymously by a member of the TPCS Research Group. Join StoryTrading for free and you can publish content under your name or anonymously to help spread the word on your stock. 

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If one examines the 10K’s going back to 2013 you will be able to ascertain that TPCS received the following revenue from BAE Systems:
2013 $4,800
2014 $3,984
2015 $3,526
2016 $2,958
2017 $2,424
2018 $4,978
2019 $3,197
This averages out to about $3.7 million/year. One could also assume that the majority of this work is Missile Tube related to Block lV. We know that Block V will have at least 9 Virginia Class submarines with Virginia Payload Modules (VPM). Joe Senftle, vice president and general manager of Weapons Systems at BAE Systems stated, “With the VPM, the Navy is adding significant capability to the Virginia-class by increasing the firepower of these subs and tripling their payload capacity.” My math works out that TPCS could receive $7.4 million from BAE for the first year with one old style Block V and one VPM Block V sub. Going into the following years, TPCS could receive over $11 million per year from BAE Systems.
On July 25, 2019 BAE Systems received a follow-on contract to produce 28 more payload tubes for Block V submarines:
https://www.baesystems.com/en/article/u-s–navy-using-bae-systems-payload-tubes-to-increase-virginia-class-strike-capability
Don’t forget that TPCS receives work from 5 other contractors in addition to BAE.
IMO this is why Alex Shen was so excited on the last conference call and talked at length about bidding opportunities over the next 24 months in the 100 million dollar range.

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