Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) Reports Covenant Deferral and Waiver Deals

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP)

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) has entered into deals with some of its senior lenders for the waiver and delay of the application date of specific major financial covenants. The firm anticipates to be in compliance with key applicable covenants related to the firm and the corresponding borrowers or such agreements will be waived and deferred until Q2 2018.

The update

Stamatis Tsantanis, the CEO of Seanergy Maritime Holdings Corp. (NASDAQ:SHIP), reported that they have finalized an agreement with their lenders to waive and postpone certain major financial terms for all of the current banking facilities through Q2 2018. While the firm was not in a breach of covenants for any of its facilities, they approached the respective banks in advance to resolve any concern that could come in the upcoming 13 to 15 months.

These contracts are intended to align the application date of some of the major financial contracts starting in Q2 2018. Currently, the company is experiencing increasing asset values and freight rates within the dry bulk industry. Seanergy considers this strategic deal will enable them to operate with more financial flexibility as they look to expand their fleet.

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) is a worldwide shipping firm that offers marine dry bulk transportation services. It presently owns a modern fleet including 10 dry bulk carriers, consisting of two Supramaxes and eight Capesizes, with a total cargo-carrying capacity of almost 1.503 million DWT and an average fleet age of nearly 8.1 years.

The firm has its base in the Marshall Islands with other offices in Athens and Hong Kong. Its class A warrants and common shares trade on the NASDAQ exchange under the symbols “SHIPW” and “SHIP”, respectively.

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) reported that it finalized a deal with one of its senior financiers for the early closure of a credit facility, which is anticipated to result into an equity accretion and material gain for the firm. Upon closure of the deal the firm stands to gain almost $11.4 million – equal to  almost 29% of the unpaid facility. Moreover, this transaction is anticipated to lead in an accretion of over 30% to the equity of the firm on an adjusted basis.

In the last trading session, the stock price of Seanergy declined more than 1% to close the session at $0.860.

3/15/2017
Ticker Symbol SHIP
Last Price a/o 3:21 PM EST  $0.86
Average Volume  785.27K
Market Cap (mlns)  $27.39M
Shares Outstanding (mlns) 31.85M
Share Float (mlns) 14.90M
Inside Ownership 59.60%
Short Float 12.08%
Short Interest Ratio 2.29
Quarterly Return -35.09%
YTD Return -25.22%
Year Return -75.36%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

TerraVia Holdings, Inc. (NASDAQ:TVIA) Calls FY2016 A Defining Year For Company

TerraVia Holdings, Inc. (NASDAQ:TVIA)

TerraVia Holdings, Inc. (NASDAQ:TVIA) a next-generation food, specialty ingredients and nutrition firm and leader in algae innovation, released report for Q4 2016 and FY2016. Apu Mody, the CEO, reported that 2016 was a defining year for company in streamlining around nutrition, food and specialty ingredients.

The unique ability of their proprietary ingredients to resolve the increasing demand for healthier and sustainable offerings is gaining momentum in aquaculture, food, specialty personal care and animal nutrition. They have sharpened their focus around commercialization of numerous high-potential products that they anticipate will position the SB Oils JV and TerraVia Holdings, Inc. (NASDAQ:TVIA) to achieve accelerated profitability and growth. The AlgaPrime™ DHA development reported with BioMar and Bunge is a major step in that direction.

Results for Q4 2016 and FY2016 early progress in company’s refined strategic focus on nutrition, food and specialty ingredients. Recent financial reports reflect progress in the firm’s transition to nutrition, food and specialty ingredients, and comprise the recently closed sale of a majority stake in the Algenist premium skin care product line, which has been seen as a discontinued business for previous periods.

In Q4 2016, total revenue came at $4.8 million as against $5.4 million in the same period of FY2015. GAAP net loss stood at $27.1 million for Q4 2016 compared to net loss of $34.7 million in the preceding year period as the TerraVia Holdings, Inc. (NASDAQ:TVIA) starts to gain from decline in cash operating expenditures.

Total revenue stood at $18.5 million versus $22.9 million in FY2015. GAAP net loss came at $101.6 million for FY2016 compared to a net loss of $141.4 million in the same period, a year earlier. The firm has started to gain from reductions in cash operating costs.

Excluding intercompany deals, revenues from the unconsolidated SB Oils JV came at $4.3 million in 4Q2016 and $9.8 million for FY2016 as against $1.5 million in 4Q2015 and $3.1 million for the preceding year.

Tyler Painter, the CFO and COO of TerraVia Holdings, Inc. (NASDAQ:TVIA), reported that they are delighted to have met their projections released on the third quarter earnings conference call. They closed the year with commercial and operational momentum, including the top recorded revenue from the SB Oils JV after its formation. By aggressively managing costs, focusing commercial measures, and engaging in strategic task with Rothschild, they are actively pursuing measures to maximize value for company’s stakeholders.

On Friday, the stock price of TerraVia declined almost 6% to close the trading session at $0.805. The stock has been on a declining spree right from the start of this year, and broken many important support levels.

3/13/2017
Ticker Symbol TVIA
Last Price a/o 3:21 PM EST  $0.81
Average Volume  860.75K
Market Cap (mlns)  77.22M
Shares Outstanding (mlns) 95.90M
Share Float (mlns) 84.92M
Inside Ownership 1.80%
Short Float 18.06%
Short Interest Ratio 17.82
Quarterly Return -42.49%
YTD Return -29.98%
Year Return -49.99%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Second Sight Medical Products Inc (NASDAQ:EYES) Closes Oversubscribed Rights Offering

Second Sight Medical Products Inc (NASDAQ:EYES)

Second Sight Medical Products Inc (NASDAQ:EYES) a developer, marketer and manufacturer of implantable visual prosthetics that offer some valuable vision to blind patients, reported that it has closed its previously reported rights providing to stockholders of record as on February 10, 2017. This offering was oversubscribed.

The update

Second Sight Medical Products Inc (NASDAQ:EYES) will retain almost $20.1 million of the payments obtained, with subscriptions over that funds being returned to shareholders. Pursuant to this rights offering, the company will release almost 13.7 million units, each unit rated at $1.47 and counting one share of the firm’s common stock and one warrant to buy a share of the firm’s common stock priced at $1.47 a share.

The warrants offer a five-year life, are directly exercisable, and will be registered on Nasdaq exchange under the ticker EYESW. Subsequent to the 2-year anniversary of their release, the warrants can be exercised with 30 days’ notice if the common stock hovers around $2.94 or more for 15 successive trading days. They anticipate net proceeds, after deduction of expenses and fees, to be almost $19.7 million.

Second Sight Medical Products Inc (NASDAQ:EYES) intends to use the proceeds from this rights offering to support ongoing development of Argus II®. Furthermore, it intends to continue supporting the ongoing advancement of the Orion™ I Visual Prosthesis, and the ongoing clinical trial of Argus II in people with Dry AMD. The financing will also be used for other general corporate and operating objectives. Broadridge Corporate Issuer Solutions, Inc. served as the information agent and as the subscription agent.

Second Sight Medical Products Inc (NASDAQ:EYES)’s Argus II System offers electrical stimulation that evades the defunct retinal cells and kindles remaining viable cells bringing visual perception in folks with grave to profound Retinitis Pigmentosa. This works by transforming images taken by a miniature video camera fixed on the patient’s glasses into a sequence of small electrical pulses. These pulses are transmitted wirelessly to a series of electrodes fixed on the retina surface.

They are planned to kindle the retina’s remaining cells, ensuing in the insight of patterns of light in the human brain. Then patient absorbs to understand these visual designs, thereby recovering some visual activity. The Argus II is the initial artificial retina to get widespread nod, and is offered at permitted centers in Germany, Italy, Canada, France, Spain, Switzerland, Turkey, Netherlands, Saudi Arabia, the U.S and United Kingdom.

Ticker EYES
Market Cap $65.3M
P/E
EPS (ttm) -$0.74
Shares Outstanding 42.13M
Shares Float 25.2
Insider Ownership 0.70%
Float Short 18.29%
Short Ratio 7.19
Performance (Quarter) -20.92%
Performance (Year) -69.90%
Performance (YTD) -21.32%
Beta
Average Volume 641.13K
Price $1.55
Volume 868,740
Target Price $16

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Momo Inc. (NASDAQ:MOMO) Continues Growth Confounding Short Selllers

Momo Inc. (NASDAQ:MOMO)

Momo Inc. (NASDAQ:MOMO) is a company that runs a mobile-based social networking platform in the People’s Republic of China. The company recently released its Q4 earnings and the market responded strongly. On Tuesday MOMO shares closed at $30. Then, after the earnings release, shares hit as high as $33.92 – an all-time high.

Observers expect massive growth from Momo Inc. (NASDAQ:MOMO) given its primary market. The report did not disappoint. Q4 EPS was $0.44 – analysts were forecasting $0.14. Q4 net revenues were $246.12 million – analysts were expecting $300.5 million. That translates into a 524% increase for net revenues YoY.

Net income attributable to Momo Inc. (NASDAQ:MOMO) increased to $83.8 million in the fourth quarter of 2016 from $6.1 million in the same period last year. Non-GAAP diluted net income per ADS (American Depository Share) was $0.44, compared to $0.06 in the same period last year. Lastly, Monthly active users increased from 69.8 million to 81.1 million from the same period last year.

For the year, net revenues increased 313% YoY. Diluted net income per ADS was $0.71 compared with $0.07 in 2015.

Yan Tang, Chairman and CEO of Momo Inc. (NASDAQ:MOMO) commented in a press release “Our total revenues and net income continue to hit new record highs. More importantly, I am happy to see that after four consecutive quarters of steady rebound, our MAU has already exceeded its historical peak level back in early 2015. In addition to the growth in user scale, 2016 was also a year where we saw meaningful improvement in user engagement. All of these shows that by optimizing the existing social experience and introducing new social and entertainment use cases, Momo is on the right track to become a larger and stronger community for users to socialize and have fun.”

Given the strong performance of Momo Inc. (NASDAQ:MOMO) over the last year it is curious to see so much of the float short the shares. Over 45% of the share float is short the stock. As MOMO has increased 30% in the last month and over 43% in the last quarter, many observers are watching the price action anxiously.

3/8/2017
Ticker Symbol MOMO
Last Price a/o 2:16 PM EST  $                    33.68
Average Volume                2,200,000
Market Cap (mlns)  $              5,770.00
Sales (mlns) $346.40
Shares Outstanding (mlns) 192.27
Share Float (mlns) 8
Shortable Yes
Optionable Yes
Inside Ownership 0.39%
Short Float 45.51%
Short Interest Ratio 1.65
Quarterly Return 43.88%
YTD Return 63.22%
Year Return 124.89%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Extreme Networks, Inc. (NASDAQ:EXTR) Offering $100 Million for Avaya’s Networking Assets

Extreme Networks, Inc. (NASDAQ:EXTR)

Extreme Networks, Inc. (NASDAQ:EXTR) will be serving as the primary bidder on Avaya’s networking business that it had previously obtained from Nortel. This deal, known as a “Section 363” sale under the bankruptcy code, results from Avaya’s need to raise cash and address its Chapter 11 reorganization plans. It The $100 million deal will now serve as a floor for any other interested parties to bid on the assets. Should any other companies submit a qualified bid in excess of $100 million, an auction will be scheduled for the assets and will take place with the bidding beginning at $100 million.

San Jose, CA-based Extreme Networks, Inc. (NASD:EXTR) develops and manufactures wired and wireless network infrastructure equipment. It also develops software for network management, policy, analytics, security, and access controls. It also offers its proprietary ExtremeAnalytics – an analytics application that assists users in optimizing network performance. The company boasts 20,000 customers worldwide.

Extreme Networks, Inc. (NASD:EXTR) was trading under $3.00 a year ago and hit $6.50 in Tuesday’s after-market trading. No doubt its involvement in helping Super Bowl LI become the most connected in history got the firm some well-deserved exposure and kudos for pulling it off successfully. A record breaking 11.8 Terabytes of data traversed the Wi-Fi network during Super Bowl LI. Fan engagement at Super Bowl LI was largely driven by social media and streaming video which accounted for 1.7 terabytes of data transferred across the network, an increase of 55% over last year’s Super Bowl.

Also helping the past year’s price trend was the upgrading of EXTR by two investment firms in 2016. Of the six firms that follow EXTR, three rate the shares as a “Strong Buy”, one rates the shares as a “Buy” and two rate EXTR as a “Hold”.

Sales for the growth company have been sluggish. It reported $519.6 million in 2014 and just $528.4 million in 2016. That is balanced by an EPS loss in 2016 ($0.31) that was less than half of the reported 2015 loss ($0.72).

Of note is that John Shoemaker was recently appointed Chairman of the Board. Shoemaker previously held senior roles at Xerox and Sun Microsystems.

3/7/2017
Ticker Symbol EXTR
Last Price a/o 7:58 PM EST  $                      6.50
Average Volume                1,100,000
Market Cap (mlns)  $                  666.24
Sales (mlns) $535.30
Shares Outstanding (mlns) 109.22
Share Float (mlns) 106.14
Shortable Yes
Optionable Yes
Inside Ownership 1.30%
Short Float 1.81%
Short Interest Ratio 1.75
Quarterly Return 42.52%
YTD Return 21.27%
Year Return 96.77%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy. 

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

Boingo Wireless, Inc. (NASDAQ:WIFI) CEO Upbeat

Boingo Wireless, Inc. (NASDAQ:WIFI)

David Hagan, Chief Executive Officer of Boingo Wireless, Inc. proudly stated in the company’s earnings release this afternoon – “2016 was an incredible, milestone year for Boingo as it was our largest venue acquisition year ever. We signed 38 new venues to the Boingo network in 2016 and signed 43 Tier 1 carrier agreements. These accomplishments enabled us to deliver an all-time revenue high of $159.3 million, marking our third consecutive year of double-digit revenue growth.”

The Numbers

Boingo Wireless, Inc. (NASDAQ:WIFI) is a distributor of antenna systems (DAS) and Wi-Fi provider that serves global consumers, carriers, and advertisers. 2016 revenue of $159.3 million increased 14.1% compared to $139.6 million in 2015. Net loss attributable to common stockholders was $(27.3) million, or $(0.72) per diluted share, compared to a net loss of $22.3 million, or $(0.60) per diluted share, in 2015. Free cash flow was $7.9 million compared to $4.5 million loss in 2015.

Boingo Wireless, Inc. (NASDAQ:WIFI) Guidance for 2017

Revenue is expected to be in the range of $180.0 million to $188.0 million (analysts were forecasting $181.4 million). Net loss attributable to common stockholders is expected to be in the range of $(29.0) million to $(25.0) million, or a net loss of $(0.74) to $(0.64) per diluted share (anayst expectations were for a narrower EPS loss of $0.48). Adjusted EBITDA is expected to be in the range of $51.0 million to $56.0 million.

3/7/2017
Ticker Symbol WIFI
Last Price a/o 5:48 PM EST  $                    11.23
Average Volume                    159,450
Market Cap (mlns)  $                  430.98
Sales (mlns) $153.10
Shares Outstanding (mlns) 38.48
Share Float (mlns) 37.32
Shortable Yes
Optionable Yes
Inside Ownership 0.50%
Short Float 5.54%
Short Interest Ratio 12.96
Quarterly Return -7.51%
YTD Return -8.12%
Year Return 51.56%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy. 

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.

Traders Jumping on the FunctionX Inc. (NASDAQ:FNCX) Train

FunctionX Inc (NASDAQ:FNCX)

FNCX shares are trading in heavy volumes this morning. The average daily volume for the company is just over 276,000 shares but already over 443,000 FNCX shares have traded by 10AM this morning. This puts volumes on track to trade at over 18 times normal. Shares closed Monday at $0.84, opened Tuesday morning at $0.97 and hit a high of $1.05.

Performance

While FNCX is a darling of traders, long-term investors likely do not have such a favorable opinion of the stock. It is down 89.5% for the year and down over 65% YTD. FNCX is trading over 50% below its 50-day simple moving average and 77% below its 200-day simple moving average.

For 2016 FunctionX Inc. (NASDAQ:FNCX) posted and EPS loss of $33.03 and a sales figure of $4.5 million – down from its 2015 reported sales of $5.7 million. In the meantime, the number of outstanding shares continues to expand from 2013 when it had just 50,000 outstanding shares; then 160,000 in 2014; 840,000 in 2015; and 1.7 million in 2016.

About FunctionX Inc.

FunctionX Inc (NASDAQ:FNCX) operates several digital media properties including Wetpaint.com which is an online destination for entertainment news for millennial women covering the latest in television, music, and pop culture.

In July 2016, FunctionX Inc (NASDAQ:FNCX) acquired Rant, Inc which has established itself as a leading innovator in online media consumption. Known for the well-established brand RantSports, Rant, Inc. has since expanded its reach towards the areas of lifestyle, fitness, exercise, entertainment, technology, and celebrities.

FunctionX Inc (NASDAQ:FNCX) also offers daily fantasy sports experience both directly to consumers and to businesses desiring turnkey solutions through its majority ownership of DraftDay Gaming Group, which is well-positioned to become a significant player in the explosive fantasy sports market. In addition, it operates Choose Digital, a digital marketplace platform that allows companies to incorporate digital content into existing rewards and loyalty programs in support of marketing and sales initiatives.

The company changed its name to Function(x) Inc. in June 2016, a reflection of its commitment to leverage its patented assets in order to become a leader in the booming interactive media space. Function(x) Inc. is based in New York, New York.

FunctionX Inc (NASDAQ:FNCX) leadership is first-rate and CEO Robert Sillerman has been a successful investor in his personal capacity in some of the biggest media brands. The capital structure is also favorable and Sillerman coverted his debt into common and preferred shares to help the company’s financial condition. FunctionX Inc (NASDAQ:FNCX) had a reverse split (1:20) on September 16, 2017.

3/7/2017
Ticker Symbol FNCX
Last Price a/o 10:05 AM EST  $                      0.92
Average Volume                    276,100
Market Cap (mlns)  $                      7.89
Sales (mlns) $3.10
Shares Outstanding (mlns) 9.39
Share Float (mlns) 6.75
Shortable Yes
Optionable No
Inside Ownership 0.00%
Short Float 3.27%
Short Interest Ratio 0.8
Quarterly Return -74.23%
YTD Return -65.15%
Year Return -89.50%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Company overview: Bionik Laboratories Corp (OTCMKTS:BNKL)

Bionik Laboratories Corp (OTCMKTS:BNKL)  is in the medical devices and robotics business. Its products are used to provide rehabilitation and mobility support to people afflicted by neurological disorders.

On February 15, the company provided an update of its financials and operations, primarily releasing a summary of its financial performance in the most recent quarter compared to a year ago and hitting about how it intends to drive future growth.

Financials update

Bionik booked an EPS loss of $0.01 in the December quarter, which is its fiscal 3Q2016. That was an improvement from EPS loss of $0.02 in the year ago quarter. Revenue for the latest quarter was $0.4 million, up significantly from the prior year when it generated no revenue.

Interactive Motion Technologies Inc. (IMT), an asset that Bionik acquired in 2016, was a major revenue contributor in the latest quarter. The business generated revenue of nearly $1 million in the December 2015 quarter, but that was before Bionik completed its acquisition.

Even after Bionik completed the acquisition of IMT, its contribution to the topline in 2016 was significantly limited because it didn’t have a commercial team due funding shortage. Bionik has now hired a sales and marketing team for IMT and it expects sales from the business to begin accelerating. The company is banking on strong clinical profile and a motivated sales team to drive significant sales of IMT products.

Bionik’s operations consumed slightly more than $1.6 million in the latest quarter, up from $1.1 million in the year-ago quarter. The major cost drivers in the latest quarter were sales and marketing expenses that increased $0.38 million from the prior year. Research and development costs were $0.57 million, down slightly from $0.59 million a year earlier. General and administration costs of $0.41 million in the latest quarter decreased from $0.44 million in the prior year.

Bionik concluded the December 2016 quarter with cash and equivalents of slightly more than $0.58 million. It had a working capital deficit of more than $3.4 million at the end of that quarter. However, the management said the working capital would be more than $0.85 million if certain items such as warrant derivative liabilities are factored out.

Operations financing

Bionik said it is evaluating financing options to ensure that it can continue with its operations. The financing options being explored include strategic partnerships. As part of its financial restructuring, Bionik announced on February 27 that it had entered into an agreement with an entity called Park Hill Capital Inc. to extend the maturity of certain promissory notes. The maturity of those notes has been extended to July 1, 2017, allowing Bionik a bit of financial flexibility especially as it struggles with working capital deficit.

Operating updates

Bionik said its products have been tested in more than 240 locations in 20 countries with the tests generating clinical data that further strengthen the foundation for their commercialization success. It further said that it has come up with a development and commercialization strategy that will guide the building of leading robotic products targeting hospital and homes.

The management of Bionik also said it is focused on expanding the company’s global footprint as part of the efforts to drive future growth. The company is also focused on expanding its line of products to unlock more revenue growth and shareholder value.

Addressable robotics market

The market for healthcare robots is expanding steadily. Research firm Tractica estimates the market for medical robots will grow at a compound annual growth rate (CAGR) of 9.7% between 2016 and 2021. As such, the size of the market is expected to be $2.8 billion by 2021 compared to $1.7 billion in 2016.

Bionik is eyeing the $2.8 billion market by 2021 as it works to develop new robotic products and expand into more global locations. Bionik’s ambitions clash with those of Transenterix Inc (NYSEMKT:TRXC), Accuray Incorporated (NASDAQ:ARAY), Corindus Vascular Robotics Inc (NYSEMKT:CVRS) and Immersion Corporation (NASDAQ:IMMR) because these companies are also training their eyes on the market.

While surgical robots currently represents the largest share of healthcare robotics,  Tractica survey shows that is likely to change in the coming years with exoskeletons and prosthetics robots taking the lead.

Talent hiring

On February 27, Bionik announced that it hired Malcolm G. Bock to be its VP of engineering. It said that Bock is a veteran of medical devices industry and that his contribute would help advance the company’s growth strategy.

Bock joined Bionik from an entity called Respiratory Motion, where he served as VP of Engineering and oversaw the development of new products and technologies. He was also senior director of global R&D and Covidien where he oversaw the launch of at least 15 new products over a period of 10 years. His contribution earned him the Covidien Inventor of the Year award.

Uplisting on the NASDAQ

Bionik is planning to uplist on the NASDAQ. That led to the company to change its financial year-end from December to March as part of the preparation for NASDAQ listing.

Dextera Surgical Inc. (NASDAQ:DXTR) Shares React to Scandinavian Presentation

Dextera Surgical Inc. (NASDAQ:DXTR)

Dextera Surgical Inc. (NASDAQ:DXTR) was the subject of a presentation provided to the Scandinavian Society for Research in Cardiothoracic Surgery. That presentation propelled shares of Dextera to a 30% gain for the day. DXTRA, a thinly traded nano-cap stock, ended Friday at $1.14, hit a high of $1.98, and then closed at $1.49. The average daily volume, before today, was 275,200 shares but trading was heavy and over 6.8 million shares ended up trading hands.

The data showed that the use of Dextera’s MicroCutter 5/80 surgical stapler reduced postoperative pain and complications compared to traditional open procedures. Dr. Marco Nardini, M.D., from James Cook University Hospital in Middlesbrough, UK, presented the latest data on the results of 82 patients undergoing Microlobectomy. The data demonstrated that for Microlobectomy procedures, the median hospital stay is reduced by at least two days when compared to traditional open lobectomy procedures, with over 20 percent of patients going home the day after surgery. For the 82 patients undergoing a Microlobectomy, the median length of hospital stay was three days, with 17 patients (20.7%) discharged the day after surgery and an additional 14 patients (17%) discharged two days after surgery.

Dextera Surgical Inc. (NASDAQ:DXTR) designs and manufactures proprietary stapling devices that enable the advancement of minimally invasive surgical procedures. In the U.S., surgical staplers are routinely used in more than one million minimally invasive laparoscopic, video-assisted or robotic-assisted surgical procedures annually. The company’s signature proprietary technology, the MicroCutter 5/80, is the world’s first and only five-millimeter surgical stapler that articulates to 80 degrees in each direction. As the smallest-profile articulating stapler available today, the MicroCutter 5/80 may reduce the amount of dissection and tissue handling required to position the stapler in confined spaces, enabling access to difficult-to-reach anatomy.

EPS losses for Dextera Surgical Inc. (NASDAQ:DXTR) have been reducing each year since 2012 when the company posted an EPS loss of $4.44. In 2015 that EPS loss shrank to $1.79. In 2016 Dextera finally broke through $4 million in sales after posting sales figures between $3 and $3.7 million from 2012 through 2015. The two firms that follow Dextera Surgical Inc. (NASDAQ:DXTR) are split on their analysis. One rates DXTR shares as a “Strong But” while the other rates the shares as a “Hold”.

3/6/2017
Ticker Symbol DXTR
Last Price a/o 4:00 PM EST  $                      1.48
Average Volume                    275,200
Market Cap (mlns)  $                    10.10
Sales (mlns) $3.90
Shares Outstanding (mlns) 8.86
Share Float (mlns) 8.61
Shortable Yes
Optionable Yes
Inside Ownership 0.30%
Short Float 3.48%
Short Interest Ratio 1.09
Quarterly Return -19.72%
YTD Return 18.75%
Year Return -69.76%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

The Bright Spots In Novadaq Technologies Inc. (NASDAQ:NVDQ)’s Dull Q4 Report

Novadaq Technologies Inc. (NASDAQ:NVDQ)

Novadaq Technologies Inc. (NASDAQ:NVDQ) reported Q4 2016 financial results on February 28 after market close. The report was largely dull, but there in were some bright spots.

The company posted EPS loss of $0.32 in Q4, wider than EPS loss of $0.17 in the same quarter a year earlier and worse than the consensus estimate that called for EPS loss of $0.15. Revenue of $20.1 million for the latest quarter not only missed the consensus estimate of $22.7 million, but also increased only 1% from a year earlier quarter.

The dull Q4 earnings results were caused by nearly flat revenue growth and higher costs. Novadaq Technologies Inc. (NASDAQ:NVDQ) wrote down the value of its inventory in the quarter by $4.1 million and recognized the impact on the cost of sales. That resulted in gross profit falling sharply to $7.7 million in the latest quarter compared to $14.4 million in a year-ago quarter. Gross margin also shrank to 39% from 72% as a result of the inventory write-down.

The weak bottom line metric was also a result of soaring operating costs. The company burned $11.4 million in operating activities in the latest quarter compared to $3.3 million in the comparable quarter a year earlier.

Novadaq Technologies Inc. (NASDAQ:NVDQ) finished the quarter with cash and equivalents of $62.4 million, down $9.9 million from the prior quarter.

The bright spots

Bright spots in Novadaq’s Q4 report included growth of recurring revenue. The company said it recurring revenue increased 43% from a year-earlier quarter to $9.6 million in the latest quarter.

Novadaq also continues to build out its direct sales and marketing system, which will give greater control of its product sales channels.

Novadaq provided an upbeat guidance for fiscal 2017. The company reaffirmed its 2017 revenue guidance of $98 – $102 million, suggesting that it expects the topline to grow at the pace of between 22% and 27% year-over-year. Furthermore, the company expects continued growth of its recurring revenue, guiding for recurring revenue in the band of $48 – $50 million in 2017. That implies that Novadaq is expecting to grow its recurring revenue at the rate of 45% – 51%.

Stock movements

Shares of Novadaq Technologies Inc. (NASDAQ:NVDQ) declined 0.7% to $7.21 in the regular session on Wednesday, and fell a further 1.3% in extended trading. The stock is up less than 2% since the beginning of 2017, and has retreated more than 26% over the last one year.

3/1/2017
Ticker Symbol NVDQ
Last Price a/o, 4:02PM EST  $                           7.21
Average Volume 559,060.00
Market Cap (mlns)  $                  414.14
Sales (mlns) $80.02
Shares Outstanding (mlns) 57.44
Share Float (mlns) 51.99
Shortable Yes
Optionable Yes
Inside Ownership
Short Float 11.55%
Short Interest Ratio 10.74
Quarterly Return -4.25%
YTD Return 1.69%
Year Return -24.11%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.