In a settlement that appears to be mutually beneficial, Technology Research Corporation (NASDAQ:TRCI) and Tower Manufacturing Corporation have agreed to bury the hatchet and all pending litigation between the two businesses has been dropped. The net result of the settlement is a cross-licensing agreement that should benefit both companies going forward, and TRC will receive $3.2 million in royalty payments, based on past sales, with payments to be made over a two-year term.

Given TRC's current stock value, which closed at $4.91 in very low volume, I see some clear potential when contrasting that closing price against TRC's previous 52-week high of $8.72, which was posted in February. TRC's 2006 annual report shows record revenues of $45.6 million, an increase of $6.2 million over the prior year, and they show consistent growth over the last four years. Currently, TRC has an EPS of 0.28 and a P/E ratio of 17.54.

Worthy of note are TRC's indications that they plan on increasing their focuses in marketing and engineering while also undertaking a program of strategically acquiring businesses or products to compliment their operating strengths without placing undue stress on the company by means of integration or funding. TRC notes several product areas in which revenue growth is already being achieved, and they have outlined a solid plan for increased net income.

If history serves as pattern, and I believe that it generally does, then Technology Research Corporation is a company worthy of attention. I get a good impression from what I have read about them and I think they have more than moderate potential. As always, do your own homework, but you may put me on record as saying: I really like this company.