Its Engraving segment makes texturizing molds used in the production of plastic components. This division also produces embossed and engraved rolls and plates, as well as process tooling and machinery serving the automotive, plastics, building products, synthetic materials, converting, textile and paper industry, computer, houseware, and construction industries.

The company's Electronics and Hydraulics Group provides single and double acting telescopic and piston rod hydraulic cylinders to manufacturers of dump truck and dump trailers, and other material handling applications. It also offers reed switches, electrical connectors, sensors, toroids and relays, fixed and variable inductors and electronic assemblies, fluid sensors, tunable inductors, transformers, and magnetic components for various industries.

The Engineering Technologies Group sells solutions in the fabrication and machining of engineered components. The company was founded in 1955 and is headquartered in Salem, New Hampshire.

Earnings are about to pop at this small (Market Cap: $350 million) manufacturer. Last year they were $1.57, up from $1.55 in 2008. This year, 1 analyst covering the company estimates $2.19. Look for fourth quarter numbers in August (fiscal year ends June 30). They should be 56 cents a share, well above the 45 cents of last year's fourth period. For the first quarter, expect 80 cents vs 75 cents in this year's first.

Even though sales declined in 2010, margins were wider thanks to a restructuring program management implemented. Because of these efforts, operating margins were the best they've been in 10 years. Part of the program was to close plants and combine production in more efficient facilities. Further helping profitablity was the trimming of eight businesses over the last few years, ones management felt weren't strategic to future growth. Those cuts took away $193 million in revenues.

But selling old businesses wasn't the only thing keeping senior management busy. They were also buying new ones, 13 over the same time period they were selling. Total sales for these add-ons were $190 million. The main focus: the Food Service Group. In fiscal 2009, it was 58% of total sales for SXI and 62% of operating profits.

Cash flow is good here. For the last 12 months, operating cash flow was $42.74 million or about $3.40 a share. The dividend only takes 20 cents of that. Capital expenditures another 90 cents. That leaves $2.30 a share or $28.7 million for buying other companies, buying back stock or raising the dividend. The dividend was 84 cents a year from 2002 to 2008, then was cut to 68 cents. Now it's down to 20 cents for a yield of .70%.

More numbers: Trailing P/E is 14.07. Forward P/E is 8.65. Price to sales ratio is .63. Price to book is 1.78. Operating margin for the last 12 months was 7.53% while Profit margin was 4.59%. Return on equity was 12.81% and Return on assets was 6.13%. There's $12.40 million in cash for 99 cents a share. Total debt is $65.43 million. Current ratio is 1.98. Book value is $16.15. Beta is a very tame .89. In the last 52 weeks the stock is up 136.66% vs the S&P 500 gain of 13.43%. The 52-week high was $30.93 on April 27. The low was $11.85 on July 29, 2009. There are 12.48 million shares outstanding. Institutions own 75.60%.

Aggressive investors will find a lot to like at SXI. Sales and profits are increasing in a difficult economy. Further margin improvements seem inevitable as the restructuring program continues to show results. Cash is relatively plentiful with strong cash flow to bolster current balances.

The one caveat: earnings have been erratic in the past. Since 2000, they've looked like this: $2.39, $2.02, $1.66, $1.47, $1.79, $2.04, $1.67, $1.23, $1.55, $1.57. So be prepared for good and bad surprises in the earnings reports.

- Company Web site: www.standex.com