USA Technology $USAT

Share Offering Lifts USA Technologies, Inc. (NASDAQ:USAT)

USA Technologies, Inc. (NASDAQ:USAT)

USA Technologies, Inc. (NASDAQ:USAT) shares were up over 5%, ending the day at $5.55, after the company announced it priced its public offering of 8,333,333 shares of common stock at $4.50 per share. USA Technologies is expected to raise, before deducting underwriting discounts and expenses, approximately $37.5 million. USA Technologies also granted William Blair & Company, L.L.C. (the underwriters) a 30-day option to purchase up to an additional 1,249,999 shares of common stock on the same terms and conditions as the initial shares. The offering is expected to close on July 25, 2017, subject to customary closing conditions.

USA Technologies

Candle Bar Graph of $USAT

USA Technologies, Inc. (NASDAQ:USAT) is a payment technology service provider of integrated cashless and mobile transactions. The company supplies has a portfolio of cashless acceptance technologies including its NFC-ready ePort® G-series, ePort® Connect, ePort® Interactive, QuickConnect, an API Web service for developers, and MORE., a customizable loyalty program. USA Technologies Inc. has 73 patents in force. The company has agreements with global firms such as AMI Entertainment, Apple, Chase Paymentech, Compass, MasterCard, Verizon, and Visa.

Last week, USA Technologies, Inc. (NASDAQ:USAT) released preliminary estimates for its quarterly and annual financial reporting ending July 30, 2017. Revenues should come in at an increase of over 46% for the same period in 2016. Net income is expected to increase over 54% over the comparable period last year. The company is estimating its annual revenues will increase over 32% above 2016’s figure but there will be a net loss. However, that net loss is forecast to be at least a 63% improvement over the 2016 net loss.

Sales have been on a steady annual increase. In 2012 the company posted sales of $29 million and that number grew year after year until, in 2016, USA Technologies posted sales at $77.4 million. Unfortunately, in 2015 and 2016 the company posted per share losses of (-0.05) and (-$0.21). Investors appear to shrug off the losses though. YTD, USAT shares are up over 29% and are up over 23% for the year. Analysts have a consensus target price on USAT shares of $6.33.

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.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.