One Horizon Group Inc (NASDAQ:OHGI) Commences $500,000 Contract

One Horizon Group Inc (NASDAQ:OHGI)

Shares of One Horizon Group Inc (NASDAQ:OHGI) bounced from all-time lows after the company announced it had started work on a contract that could generate as much as $500,000 in revenue for the second half of the year. Investors reacted to the news by sending the stock up almost 65% to close at $1.23 a share.

The massive rally pushed the stock to a key resistance level of $1.50 a share. The stock is currently trading in a downtrend, in a $0.75-$1.39 trading range. The rally further goes to strengthen One Horizon Group Inc (NASDAQ:OHGI)’s compliance with the NASDAQ minimum bid requirement.

One Horizon Group Inc (NASDAQ:OHGI)
One month OHGI Stock Chart

OHGI Stock Performance

One Horizon Group Inc. (NASDAQ:OHGI) is a leading provider of secure instant messaging software. The company provides real time communication to millions of people. Fuelling renewed investor interest in the stock is the company’s new contract with a Hong Kong based customer.

“As a result of this contract and expected future growth, combined with lower overheads and reduced cash outlays resulting from the recent disposition of VoIP subsidiaries, we expect the Company to be cash flow positive in the near term,” said Martin Ward, Principal Executive Officer.

The sizable contract requires the company to furnish the client with secure messaging software. The contract should go a long way in affirming the company’s push for growth. One Horizon Group Inc (NASDAQ:OHGI) has already set its eyes on China and Hong Kong’s gaming, security and education sectors in pursuit of new opportunities for growth.

Expansion Drive

During the first quarter, One Horizon Group Inc (NASDAQ:OHGI) secured a license that paves the way for it to expand its footprint in Ghana. The company is gearing up to provide the benefits of voice communications to over 18 million mobile data subscribers in the West African nation. The company is also in the process of pursuing opportunities in the mobile hot spot market having signed a licensing agreement with a leading pocket Wi-Fi service provider.

Separately, Horizon Group Inc (NASDAQ:OHGI) has repaid a debt of $662,048 owed to the Principal Officer through the issuance of 859,802 shares of common stock. In addition, the company generated a net loss of (-$1.28) million for the first three months of the year compared to a net loss of (-$1.26 million) for the corresponding period last year.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $OHGI and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Microsoft Corporation (NASDAQ:MSFT) Seems Bullish on One Horizon Group Inc. (NASDAQ:OHGI)

One Horizon Group Inc. (NASDAQ:OHGI)

Shares of One Horizon Group Inc. (NASDAQ:OHGI) continue to edge higher in the market in the wake of software giant Microsoft Corporation (NASDAQ:MSFT) reiterating that it is destined for global growth on leveraging Azure Cloud capabilities. The Mobile VoIP software company has successfully shortened its sales cycle and improved time to market by combining its VoIP technology with the Azure cloud platform.

Azure Cloud Integration

The Azure cloud platform has been of great help to One Horizon Group Inc. (NASDAQ:OHGI) as it has helped replace expensive infrastructure requirement thereby gaining efficiencies for the VoIP technology firm. The replacement has also helped the company develop a competitive edge in the industry with its groundbreaking SmartPacket mobile VoIP.

Microsoft remains confident about the company’s prospects on the global scene given that its SmartPacket VoIP platform has proved to be effective in improving efficiency by which voice signals are transmitted to the internet from smartphones. According to the tech giant, reduction in mobile bandwidth consumption and battery usage are some of the benefits that should differentiate One Horizon from the competition.

One Horizon Group Inc. (NASDAQ:OHGI) CEO, Brian Collins, has already pointed out that carriers have started to take note of the company’s VoIP technology.

“Carriers are realizing that with our technology we solve a very real problem as well as unlocking value through an additional and otherwise lost customer roaming revenue stream. Today, our technology is live in seven emerging markets. Naturally, as we continue to grow, we will need to become more operationally efficient and utilize technology that will support our growth initiatives,” said Mr. Collins.

Stock Performance

Microsoft’s remarks have given One Horizon Group Inc. (NASDAQ:OHGI) a boost in the market after the stock came under immense selling pressure recently. A wider than expected net loss of $1.3 million in the first quarter plunged the stock in the market as investors continued to question its growth prospects. A delisting notice from the NASDAQ fueled speculation about the VoIP software provider’s future.

One Horizon Group Inc. (NASDAQ:OHGI) has since regained NASDAQ compliance after its stock price rallied above the $1 a share trading mark. The big question now is whether the stock will continue to edge higher on the momentum.

The stock of One Horizon Group Inc. (NASDAQ:OHGI) was a big mover in Tuesday’s trading session – rallying by 69.12% and ending the day at $1.15 a share. Since the start of the month, the stock has traded higher on increased volume.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $OHGI and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

One Horizon Group Inc (NASDAQ:OHGI) Announces 2016 Full Year Financial Results

One Horizon Group Inc (NASDAQ:OHGI)

One Horizon Group Inc (NASDAQ:OHGI), a leading provider of mobile VoIP software for operators of telecommunications, recently announced its financial results for the year ending December 31, 2016.

For the year ended December 31, 2016, the company’s revenue amounted to around $1.6 million compared to around $1.5 million that was reported for the financial year ended December 31, 2015. This represents a $0.1 million or 5% increase. The increase is attributed to the rise in B2B business mainly in the Asian region. The company reported approximately $0.1 million for the last financial year in cost of revenue for hardware charges and hardware calls. The company reported approximately the same figure for the year ended December 31, 2015. The company’s cost of sales was mainly due to amortization of software development costs as well as network charges, costs of hardware, and calls.

Gross profit for the year ended December 31, 2016 amounted to around $1.5 million in comparison to around $1.4 million reported in the previous financial year. The company reported a 6% increase in its gross profits from what was reported the previous financial year. The increase is a result of increase in B2B business – mainly in Asia.

Operating expenses comprised of research and development expenses, allowance for doubtful accounts, general and administrative expenses and amounted to around $4.4 million or 272% of revenue compared to around $4.9 million, or 322% of sales for the year ended December 31, 2015. This translates $0.5 million decrease.The decrease in expenses is attributed to reduction in allocations for doubtful accounts amounting to $0.4 million in the last financial year relative to the previous financial year. General and administrative expenses amounted to around $3.3 million for the last financial year compared to around the same amount reported in the previous financial year.

The company reported around $5.5 million in net loss for the year ended December 31, 2016 compared to $6.3 million in net loss reported for the previous financial year. The company’s management is expecting to raise a growth in the company’s revenue basing on the launch of its products in Africa, Asia and Latin America regions. The company’s management is also optimistic that the company will continue to expand its business and grow its profit margin. In addition, the company is also counting on the sale of its B2C service to Chinese end users.

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.