Digital Ally, Inc. (NASDAQ:DGLY) FY2016 Total Revenue Declined By 17%

Digital Ally, Inc. (NASDAQ:DGLY)

Digital Ally, Inc. (NASDAQ:DGLY) which develops, manufactures and commercializes advanced video surveillance offerings for law enforcement, commercial and homeland security applications, issued its operating report for the quarter and full year closed December 31, 2016.

For FY2016, the total revenue declined 17% to almost $16.6 million, against revenue of nearly $20 million in the year closed December 2015. This decline can be attributed to ongoing confusion led by Taser’s misleading PR pertaining to company’s patents, the reexamination of patent initiated by Taser, and product quality control concerns with FirstVU HD product.

In addition, the company speculates that Taser conspired to keep them out of the market by engaging in improper, unfair and unethical competition. They anticipate FirstVU HD sales to improve during 2017 as the company prosecutes the patent cases against WatchGuard, Taser and others, and resolves product quality concerns. They consider the VuLink product differentiates the Digital Ally product offerings from its customer’s.

The highlights

Stanton E. Ross, the CEO of Digital Ally, Inc. (NASDAQ:DGLY), reported that they were disappointed to post annual revenues for 2016 that dropped 17% from the preceding year, even though they witnessed a jump in service-based revenues. They are focusing on expanding their recurring service-based revenue to grow and stabilize revenues on a quarterly basis.

The company is pursuing numerous new market channels that don’t involve private security and traditional law enforcement clients. If successful, they consider that these latest market channels could result in increased recurring service revenues for in 2017 and beyond.

Digital Ally, Inc. (NASDAQ:DGLY) is assessing a new revenue model that brings together all product offerings, comprising the long-term lease of body-worn and/or in-car video/audio hardware, with a monthly subscription for company’s cloud storage, archiving and search services for the underlying video and audio material. They consider this revenue service model may entice clients, in specific non-law enforcement and commercial customers because it lowers the capital expenditure up front and removes repairs and maintenance in lieu for level monthly payments for the use of the data storage, equipment and management services.

The company recently announced the release of the ‘DVM-800’ HD in-car video setup, which they consider will be disruptive in the industry and will result in an expansion of overall market share in the law enforcement sector.

3/27/2017
Ticker Symbol DGLY
Last Price a/o 3:21 PM EST $4.60
Average Volume 82.33K
Market Cap (mlns)  $24.84M
Shares Outstanding (mlns) 5.40M
Share Float (mlns) 4.47M
Inside Ownership 13.50%
Short Float 18.16%
Short Interest Ratio 9.86
Quarterly Return 10.84%
YTD Return 9.52%
Year Return -8.00%

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.

Helios and Matheson Analytics Inc (NASDAQ:HMNY) To Promote Safety And Social Empowerment

Helios and Matheson Analytics Inc (NASDAQ:HMNY)

Helios and Matheson Analytics Inc (NASDAQ:HMNY) reported a new association with Darryl Strawberry, who will be the spokesperson for the firm. He will collaborate with RedZone on different marketing and public relations activities to support safety and social empowerment, making personal appearances, doing media interviews, personal blog entries and video endorsements.

RedZone’s proprietary technology improves mobile GPS navigation by providing users the alternative of taking a riskier route or safer route to their destinations. Its RedZone Map app uses a social media component, which permits for it’s happening now reporting of crimes together with real-time crime information from over 1,400 local, national, state and international sources.

The update

Ted Farnsworth, the Chairman and CEO of Helios and Matheson Analytics Inc (NASDAQ:HMNY), reported that they are thrilled to associate with Strawberry because of the work he has been doing to lead young people toward becoming the best they can be in the face of a challenging world. His diligent commitment to people and their communities is shown via his charitable work, public service, and the formation of own organization committed to assisting people recover and prosper. His focus on improving communities aligns perfectly with the company.

Helios and Matheson Analytics Inc (NASDAQ:HMNY) reported that unlike Waze and Google Maps, RedZone Map is the first app that moves beyond navigation to resolve personal safety concerns, integrating GPS-driven course with real-time crime information and social listening. When launched, the app made through the top five in the Apple App Store’s United States navigation division, right behind Waze and Google Maps.

Strawberry said that he is encouraged by RedZone Map and the team’s commitment to assist taking communities back and turning them safer. The app assists people become increasingly aware about crime and their surroundings. Establishing community awareness is a vital step toward minimizing crime and turning red parts into green zones. If they can save one life, they have accomplished their mission.

Strawberry is best celebrated for his MLB career, where he made a mark as one of the most admired sluggers in the game. Born in Los Angeles, he was part of the Crenshaw High School Cougars’ baseball team.

In the last trading session, the stock price of Helios and Matheson Analytics Inc (NASDAQ:HMNY) gained more than 11% to close the trading session at $2.71. The gains came at a share volume of 939,532 compared to the average share volume of 174,384.

3/27/2017
Ticker Symbol HMNY
Last Price a/o 3:21 PM EST  $2.72
Average Volume 375.34K
Market Cap (mlns) $16.86M
Shares Outstanding (mlns) 6.20M
Share Float (mlns) 1.36M
Inside Ownership 43.10%
Short Float 28.94%
Short Interest Ratio 1.05
Quarterly Return -35.55%
YTD Return -17.58%
Year Return 133.76%

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: 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.

Analysts Give Confusing Update on Sierra Wireless, Inc. (NASDAQ:SWIR)

Sierra Wireless, Inc. (NASDAQ:SWIR)

Sierra Wireless, Inc. (NASDAQ:SWIR) achieved something of a rarity today – its shares were downgraded from “Outperform” to “Market Perform” but the price target was raised from $23.50 to $30.00. The market decided that the downgrade was of more importance than the revised target price and SWIR shares were down almost 7% at the close of trading. Volumes were heavy. SWIR has an average daily trading volume of less than 480,000 shares but over 1.1 million shares traded hands today.

Some analysts also believe that a pause in performance may have been around the corner. YTD SWIR has gained over 76%, for the year SWIR shares are up over 108%, and for the last quarter SWIR shares are up over 68%. Given the  rapid ascent of Sierra Wireless, Inc. (NASDAQ:SWIR), many say it could be time for the shares to take a breather. Further justification was that the recent contracts the company has secured are with major players and may cut into margin expansion.

The “Internet of Things” describes the connectivity between consumer and commercial technologies to a wireless network by embedding them with electronic, software, or sensor technology. This wireless connectivity moves society towards a world where less human-to-human interaction is required to achieve the same results. Remotely turning on your house lights, a “smart” thermostat, an engineer receiving an email about a broken valve in a municipality’s water filtration plant, or electronic quality control communications concerning a manufacturing line – all are examples of the “Internet of Things”. According to one source this market is set to at least double by 2020 – to $1.7 Trillion.

Since launching the world’s first cellular embedded module in 1997, Sierra Wireless, Inc. (NASDAQ:SWIR) has shipped over 100 million devices to connect the Internet of Things. Sierra has been first-to-market with the world’s smallest module, embedded software, embedded SIM, interchangeable modules and 4G LTE solutions to name a few. They produce products for the energy, industrial municipal, healthcare, and automobile sectors – to name a few.

SWIR shareholders have seen steady improvement in sales figures. In 2011, Sierra Wireless, Inc. (NASDAQ:SWIR) sales were reported at $333.2 million but reached $615.6 million in 2015. EPS, prior to 2016, was never positive. SWIR lost $1.62 EPS in 2011 but that loss narrowed in 2015 to -$0.08 and finally turned positive in 2016 when SWIR shares had an EPS profit od $0.48. Five firms follow SWIR shares. One rates SWIR shares as a “Strong Buy”, one rates the shares as a “Buy”, two rate SWIR shares as a “Hold”, one rates the shares as a “Sell”.

3/27/2017
Ticker Symbol SWIR
Last Price a/o 4:00 PM EST  $                    27.70
Average Volume                    479,000
Market Cap (mlns)  $                  904.13
Sales (mlns) $615.60
Shares Outstanding (mlns) 32.64
Share Float (mlns) 31.72
Shortable Yes
Optionable Yes
Inside Ownership 6.60%
Short Float 1.70%
Short Interest Ratio 1.12
Quarterly Return 68.90%
YTD Return 76.43%
Year Return 108.43%

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.

Uni-Pixel Inc (NASDAQ:UNXL) Enters Long-Term Deal With U.S.-based PC Maker

Uni-Pixel Inc (NASDAQ:UNXL)

Uni-Pixel Inc (NASDAQ:UNXL) has entered into a long-term deal with a key U.S.-based PC maker to offer XTouch touch screen sensors on a numerous year basis. The deal offers that the PC manufacturer will supply rolling projections to company who will utilize its reasonable measures to reserve engineering capacity for the PC manufacturer who, in turn, accepts to use its best commercial measures to make the purchases defined in the rolling forecasts.

Additionally, the deal offers the customer and company to share product advancement roadmaps and engage in innovation meetings. The client may also request limited, exceptional early access to specific technology.

The update

Jeff Hawthorne, the CEO and President of Uni-Pixel Inc (NASDAQ:UNXL), said that this multiyear deal serves both parties and it offers an expectation from both firms to guarantee the timely development, introduction and delivery of new products. The company gains from long-term planning competences and capacity preparation while its associate is supported in resolving current market needs and getting new devices to the industry.

Hawthorne added that this is validation of the usefulness of touch screen know-how and it inspires confidence from a major PC manufacturer on the firm’s know-how. They consider this a collaborative and strategic association and they look forward to functioning with this industry major partner in the imminent years.

Uni-Pixel Inc (NASDAQ:UNXL) markets and develops Performance Engineered Films for flexible electronics and the touch screen markets. The firm’s roll-to-roll electronics making procedure patterns fine line conductive components on thin films. It markets its know-how for touch panel sensor, protective cover film uses and cover glass replacement under the Diamond Guard™ and XTouch™ brands.

Recently, the company reported that it intends to release its financial report for the fourth quarter and FY2016 on March 30, 2017. The financial report will be followed by a conference call from the management. 1.49 million shares traded hands in the most recent trading session. It reported its EPS in the previous quarter was loss of $0.17 per share – lagging the street analyst projection of decline of $0.11 per share.

Recently the target price for Uni-Pixel Inc (NASDAQ:UNXL) was revised and according to the revision, the stock price will hit $2.91 in the coming 52 weeks.

3/24/2017
Ticker Symbol UNXL
Last Price a/o 3:21 PM EST  $0.80
Average Volume 857.83K
Market Cap (mlns)  $44.60M
Shares Outstanding (mlns) 55.75M
Share Float (mlns) 54.95M
Inside Ownership 1.40%
Short Float 9.51%
Short Interest Ratio 6.09
Quarterly Return -18.32%
YTD Return -18.61%
Year Return 1.27%

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.

Despite Rumors, Oclaro, Inc. (NASDAQ:OCLR) Sticking to Business

Oclaro, Inc. (NASDAQ:OCLR)

Oclaro, Inc. (NASDAQ:OCLR) had previously been the subject of talk concerning a takeover or merger. However at the conclusion of the industry’s Optical Fiber Communication exhibition, held in Los Angeles, analysts came away commenting that nothing appears imminent. Normally speculation regarding a merger or takeover is cause for a company’s stock value to rise. Often when such speculation is proved false, the stock’s value recedes. However today OCLR is up almost 7%. Further, OCLR hit $8.02 just last week and is now trading over $10.

San Jose, CA-based Oclaro, Inc. (NASDAQ:OCLR) develops and manufactures optical components, modules, and subsystems for networks and data centers that will enable the next generation of streaming video, cloud computing, VOIP, and other high-speed applications.

In 2016 there was movement in the sector leading to a possible merger between Finisar (FNSR) and Lumentum Holdings (LITE). Such a deal made sense when considering the industry’s competitive pricing pressures and the duplication of research and development efforts and expenses. However, that deal is now said to be not moving forward. Consequently, given the economies of scale a merger could bring, Oclaro, Inc. (NASDAQ:OCLR) is now rumored to be in position to be the next M&A target for Finisar. That deal is not imminent though. As a matter of fact, a highly placed Oclaro executive stated “companies get bought, not sold”.

Oclaro, Inc. (NASDAQ:OCLR) is well positioned to continue on its own. Of the ten Wall St. firms that cover the company, nine rate OCLR shares as a “Strong Buy” and one rates the shares as a “Buy”. Their consensus price target is over $14. EPS for OCLR shareholders has been trending upwards. In 2013 Oclaro reported an EPS loss of -$1.37 and that loss reduced each year and in 2016 Oclaro produced an EPS profit of $0.08.

Shares of OCLR are trading above their respective 20, 50, and 200-day moving averages. Even though OCLR shares have seen wide price swings on an inter-day basis, 69% of the shares are owned by institutions. Institutions typically are long-term holders of any shares they own. On the other hand, OCLR shares are heavily shorted. 16% of the share float is represented by shares being held short. Still, Oclaro, Inc. (NASDAQ:OCLR) has performed well YTD by gaining almost 7%. For the quarter, OCLR shares are up 5.5%.

3/24/2017
Ticker Symbol OCLR
Last Price a/o 11:57 AM EST  $                    10.18
Average Volume                9,100,000
Market Cap (mlns)  $              1,590.00
Sales (mlns) $515.60
Shares Outstanding (mlns) 166.59
Share Float (mlns) 157.9
Shortable Yes
Optionable Yes
Inside Ownership 2.60%
Short Float 16.00%
Short Interest Ratio 2.78
Quarterly Return 5.51%
YTD Return 6.93%
Year Return 86.55%

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.

Does QuickLogic Corporation (NASDAQ:QUIK) Have Good Reason for Dilutive Share Offering?

QuickLogic Corporation (NASDAQ:QUIK)

QuickLogic Corporation (NASDAQ:QUIK) has priced its recently announced share offering and that news has sent QUIK shares down over 10% in pre-market trading. QUIK ended yesterday at $1.80 and is currently trading around $1.60 on exceptionally heavy volumes. The listed average daily volume for QUIK shares is a little over 425,000. However, in the pre-market alone, QUIK shares exchanged hands over 2.5 million times.

QuickLogic Corporation (NASDAQ:QUIK) has 68.16 million shares outstanding. The company intends to issue, through a public offering, and additional 10 million shares at an offering price of $1.50. QuickLogic also granted their underwriters, Craig-Hallum Capital Group, an option to purchase an additional 1.5 million common shares at the same terms and conditions. All shares being offered are being issued by QuickLogic. The filing of the prospectus for the offering was made with the SEC on March 20, 2017.

QuickLogic Corporation (NASDAQ:QUIK) works with original equipment manufacturers (OEMs) to take full advantage of the life of a battery powering a smartphone, wearable, or internet-of-things technologies. The Sunnyvale, CA-based technology firm offers it proprietary eFPGA solution to help manufacturers implement new functions on their hardware without post-production redesign. This approach allows OEM enterprises to develop their product without the worry of having to change it due to ever-changing market demands, thereby shortening the development cycle.

Reliable sources claim that the share offering is not defensive in nature. Rather, funding is required to exploit a market opportunity for its eFPGA solution that was either larger than first predicted or has grown larger at an increasing rate.

Two investment firms follow QuickLogic Corporation (NASDAQ:QUIK). Each rate shares of QUIK as a “Strong Buy” with a consensus price target of $4 although it must be noted that the target price was published prior to the afore-mentioned dilutive public offering.

QuickLogic Corporation (NASDAQ:QUIK) has a lot riding on its eFPGA solution. Since 2013 shareholders of QUIK have experienced EPS losses ranging between -$0.24 and-$0.32. Sales have also trended down. In 2015 sales were posted at $27.8 million. For their fiscal year 2017, sales were down to $11.4 million. Meanwhile the number of shares outstanding has increased from 41.83 million in 2013 to 65.38 million in 2017.

3/23/2017
Ticker Symbol QUIK
Last Price a/o 9:11 AM EST  $                      1.62
Average Volume                    426,650
Market Cap (mlns)  $                  122.69
Sales (mlns) $11.40
Shares Outstanding (mlns) 68.16
Share Float (mlns) 67.08
Shortable Yes
Optionable Yes
Inside Ownership 0.20%
Short Float 6.84%
Short Interest Ratio 10.75
Quarterly Return 45.16%
YTD Return 29.50%
Year Return 62.16%

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: 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.

Internap Corp. (NASDAQ:INAP) Low Debt Rating Shrugged Off By Stock Market

Internap Corp. (NASDAQ:INAP)

Internap Corp. (NASDAQ:INAP) was raised to a “Buy” from a “Hold” rating by analysts at Stifel on March 10, 2017. On March 16, 2017, Moddy’s rating services assigned Internap Corp.’s $325 million senior secured credit facility a B3 rating. A “B3” rating is described as below investment grade and “Highly Speculative”. However, INAP shares have risen every day since that credit rating was assigned. The credit facility will be used to finance Internap’s existing term loan and revolver after fees are paid.

In September of 2016, one Director of Internap Corp. (NASDAQ:INAP) bought 50,000 shares. However, with that loan exception, the reportable sales by insiders or institutional traders have all been sales. The reported sales prices were between $2.63 and $2.77 and one at $1.92.

Internap Corp. (NASDAQ:INAP) is a provider of IT services. The Atlanta, GA-based company has two business channels – Data Center Services as well as Internet Protocol (IP) Services. Internap has 51 data centers in North America, Europe, and Asia. The IP services division provides patented IP services that serve several business sectors including software, internet, and advertising technology. This is accomplished through Internap’s 81 IP service points globally.

Shares of Internap Corp. (NASDAQ:INAP) have closed higher, or within a few pennies of the previous day’s close, for the last ten trading sessions straight. INAP is trading above their 20, 50, and 200-day moving averages. The Relative Strength Index, used by traders to help determine over bought/sold conditions, is listed at 89.28. A figure over 80 is considered by many to be well within “over-bought” territory. Analysts give INAP shares a target price of $$4.29 – over 15% higher from its current price.

Since 2012, shareholders of INAP have experienced negative EPS. In 2012 Internap Corp. (NASDAQ:INAP) reported a loss of -$0.09 EPS. INAP shares have, YoY, experienced larger losses and in 216 the EPS loss for INAP shareholders was -$2.38. Sales have also been falling since 2014 when Internap reported $335 million. By 2016 that figure had declined to only $298.3 million. INAP shares have not been hit hard by dilutive share offerings though. In 2012 there were 50.76 million INAP shares outstanding. That number stood at 52.33 million at the end of 2016.

3/21/2017
Ticker Symbol INAP
Last Price a/o 1:58 PM EST  $                      3.64
Average Volume                1,270,000
Market Cap (mlns)  $                  288.45
Sales (mlns) $298.30
Shares Outstanding (mlns) 82.18
Share Float (mlns) 78.79
Shortable Yes
Optionable Yes
Inside Ownership 3.00%
Short Float 4.42%
Short Interest Ratio 2.75
Quarterly Return 294.38%
YTD Return 127.92%
Year Return 30.00%

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.

Neonode, Inc. (NASDAQ:NEON) Releases Financials – Market Yawns

Neonode, Inc. (NASDAQ:NEON)

Neonode, Inc. (NASDAQ:NEON) develops and licenses user interfaces and optical interactive touch solutions for global customers. Neonode’s proprietary zForce technology can be found in mobile phones, tablets, e-readers, toys, gaming consoles, printers, automotive displays, home appliances, and wearable technologies.

Today, Neonode, Inc. (NASDAQ:NEON), based in Stockholm, Sweden, released their Q4 2016 and full year financial results. Revenue for fiscal 2016 was $10.2 million, an 8% decrease compared to $11.1 million in fiscal 2015. Combined total gross margin is 87% in 2016 compared to 66% in 2015. The increase in gross margin is primarily due to a higher percentage of Neonode’s total revenue is derived from license fees in 2016 compared to 2015. Operating expenses decreased 7% to $14.0 million for fiscal 2016 compared to $15.0 million for fiscal 2015. Net loss for fiscal 2016 was $5.3 million, or $0.12 per share, compared to a net loss of $7.8 million, or $0.19 per share, in fiscal 2015.

Market reaction was indifferent if not negative. Neonode, Inc. (NASDAQ:NEON) shares ended Tuesday at $1.60. NEON shares gapped up to open at $1.68 and reached a high of $1.70 but then declined to close at $1.54 for a 4.4% loss from the previous day. Volumes were heavy – more than double their average daily volumes.

Neonode, Inc. (NASDAQ:NEON) shares have a 52-week high of $2.26 and a 52-week low of $0.96. Sales have increased YoY since 2013 when Neonode posted a figure of $3.7 million. That figure improved in 2014 and in 2015 Neonode reported sales of $11.1 million. NEON shareholders have experienced an EPS loss from 2011 (-$0.64) through 2015 (-$0.19). Also of concern to shareholders is that the number of outstanding shares has increased every year. In 2011 there were 26.78 million outstanding shares. But by 2015 that number had increased to 41.2 million. The sole analyst that covers shares of NEON rates them as a “Strong Buy”.

3/15/2017
Ticker Symbol NEON
Last Price a/o 2:53 PM EST  $                      1.53
Average Volume                    148,000
Market Cap (mlns)  $                    73.90
Sales (mlns) $10.30
Shares Outstanding (mlns) 46.19
Share Float (mlns) 42.53
Shortable Yes
Optionable Yes
Inside Ownership 20.19%
Short Float 11.15%
Short Interest Ratio 32.04
Quarterly Return -11.11%
YTD Return -13.04%
Year Return -24.53%

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.

Microvision, Inc (NASDAQ:MVIS) Hitting Its Stride

Microvision, Inc. (NASDAQ:MVIS)

Microvision, Inc. (NASDAQ:MVIS) released their Q4 and full year earnings last week and today announced a major sale – both have been well received by the market. Based on revenues that beat analyst expectations, MVIS shares gapped up to open at $1.75 and hit an inter-day high of $1.94 on volumes that were over four times normal. MVIS shares are still below their 52-week high of $2.32 but well above their 52-week low of $0.89.

Microvision, Inc. (NASDAQ:MVIS) is the creator of its proprietary PicoP® laser beam scanning (LBS) technology, an ultra-miniature laser projection and imaging solution that is licensed to firms that develop and manufacture high-tech components. The Redmond, WA-based firm has an IP portfolio that has been recognized by the Patent Board as a top 50 IP portfolio among global industrial companies and has been included in the Ocean Tomo 300 Patent Index.

Last week Microvision, Inc. (NASDAQ:MVIS) announced that for Q4 they experienced an EPS loss of -$0.09 and had revenues of $2.91 million which was better than the street estimate of $3.12 million and was also 57.3% better than Q4 2015. MicroVision achieved over 60% revenue growth with $14.8 million for the full year 2016 compared to $9.2 million in 2015. Microvision also improved gross margin to 30% in 2016 compared to 22% in 2015.

Today a $6.7 deal was announced with an Asian electronics device manufacturer. The customer plans to embed the MicroVision display engines in smartphones.

All four firms that follow Microvision, Inc. (NASDAQ:MVIS) have rated MVIS shares as a “Strong Buy”. The trend would support such a rating. EPS losses for 2016 (-$0.32) was not much better than the -$0.31 loss in 2015 but sales have risen steadily. In 2014 the company reported sales of $3.5 million followed in 2015 by $9.2 million, and then $14.8 million in 2016. That is also an unfortunate trend with the number of outstanding shares. Shares outstanding have increased each year and now stand at 51.96 million.

3/15/2017
Ticker Symbol MVIS
Last Price a/o 2:12 PM EST  $                      1.82
Average Volume                    567,550
Market Cap (mlns)  $                  110.94
Sales (mlns) $14.80
Shares Outstanding (mlns) 69.34
Share Float (mlns) 67.53
Shortable Yes
Optionable Yes
Inside Ownership 0.70%
Short Float 7.70%
Short Interest Ratio 9.16
Quarterly Return 52.38%
YTD Return 26.98%
Year Return -30.74%

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.

Will Deal Improve Shareholder Performance for Dragonwave Inc. (NASDAQ:DRWI)?

Dragonwave Inc. (NASDAQ:DRWI)

News of a new sales and services agreement has sent shares of DRWI up over 65% on heavy volumes. Dragonwave Inc. (NASDAQ:DRWI) has a market cap of less than $8.5 million but has sales of $48 million. DRWI has been the victim of poor profit margins and poor stock performance that could be partly attributed to a yearly share issuance which dilutes shares. Dragon wave is based in Ottowa, Canada and offers high-capacity packet microwave IP solutions to wireless communication, and broadband service providers through its own salesforce and its partners.

Revenues peaked in Q3 2015 for Dragonwave Inc. (NASDAQ:DRWI) when it reported a figure of $47.3 million but in Q4 2016 the company reported revenues of just $12 million. In Q4 2016 the loss attributable to shareholders was $9.1 million which was over four times the loss of $2.3 million for Q4 2015.

Today Dragonwave Inc. (NASDAQ:DRWI) announced it has signed a new Master Sales and Services Agreement with Ingram Micro Australia. The agreement between the two companies will see Ingram Micro expand its wireless vendor portfolio to the Australian channel with the introduction of DragonWave’s extensive product portfolio.

Ingram Micro is the world’s largest wholesale technology distributor in IT supply-chain and mobile device lifecycle services. Ingram Micro has a presence in over 170 countries and claims that it is the world’s only global broad-based IT distributor. Given that geography, it is of no wonder that Ingram Micro also claims it has the world’s broadest offering of IT products and services.

This partnership is welcomed, and likely needed, by Dragonwave. While its gross margin figures show a mixed picture, its net profit margin of -29.76% deters many investors as it is well below the industry average. The Ingram Micro deal may help DRWI shareholder’s attitudes towards the under-performing stock. What remains to be seen is if Dragonwave Inc. (NASDAQ:DRWI) can utilize any additional revenues to increase overall margins. DRWI shareholders have been hit by dilutive public offerings each year since 2012 when the number of outstanding shares was 1.42 million. By 2016 that number had expanded to 3.02 million. Unfortunately for the stock, 2016 also saw lower sales figures ($86.3 vs. $157.8 million) and wider EPS losses (-$14.01 vs -$7.90).

3/14/2017
Ticker Symbol DRWI
Last Price a/o 10:59 AM EST  $                      1.99
Average Volume                    127,800
Market Cap (mlns)  $                      8.25
Sales (mlns) $48.00
Shares Outstanding (mlns) 7.17
Share Float (mlns) 5.48
Shortable Yes
Optionable No
Inside Ownership 4.00%
Short Float 4.60%
Short Interest Ratio 1.98
Quarterly Return -57.41%
YTD Return -55.77%
Year Return -50.00%

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.