Update! Airborne Wireless (Nasdaq: ABWN) Flying High Since SNU Report!

Airborne Wireless Network – OTCQB: ABWN

When we first wrote about ABWN a couple of weeks ago, it was trading around $0.80 per share. Today it is over $1.35. This could be due to the announcement today that Airborne Wireless Network (OTC QB:ABWN) entered into an agreement with Electric Lightwave Holdings, Inc. (“Electric Lightwave”). This agreement creates a mutually beneficial relationship pursuant to which the ground segment of our contemplated Infinitus Super Highway™ will be supported by Electric Lightwave’s 12,500-mile fiber optics cable and data center network, which is located throughout the Western United States, including an undersea cable link to the Hawaiian Islands.

A Fox Business interview with VP Marius De Mos can be viewed here.

 

Our December 16th article follows:

Global internet connectivity is achieved through undersea cables along with ground-based fiber and satellites. Airborne Wireless Network is developing a new approach – an airborne digital highway.  The Company intends to create a high-speed broadband wireless network without towers or cables – they will do it by linking commercial aircraft in flight.  Each aircraft will act as an airborne router, sending, and receiving internet signals from one aircraft to the next and creating a digital superhighway in the sky. Airborne Wireless Network intends the network to be a high-speed broadband internet pipeline.

The Company intends to supply their capacity to wholesale carriers that already have customers such as internet providers and mobile phone companies. Once developed, the airborne network could provide low cost, high-speed connectivity to rural areas, island nations, ships at sea, oil platforms, in addition to connectivity to commercial and private aircraft in flight.

Airborne Wireless Networks holds a patent many in the industry consider highly valuable if the team can execute its plan. Impressively, they have secured Alex Sandel, co-founder of Packard Bell computers, as Chairman of its Advisory board. The company closed a $1,200,000 private placement funding on November 22, 2016.

However, ABWN is not a stock without considerable risk. This is a new technology in a highly competitive industry. Volumes of ABWN are currently weak – less than 22,000 today. Also of concern is that no analysts cover ABWN.

Still, if you have the appropriate appetite for risk ABWN, this is an innovative approach to a real need , internet connectivity, that most of the world cannot do without. ABWN closed today at $0.803.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock.

Helios and Matheson Analytics (Nasdaq: HMNY) Announcement Sends Shares Higher

Helios and Matheson Analytics, Nasdaq: HMNY

Shares of Helios and Matheson Analytics are up over 10% on large volumes. Earlier in the trading day, shares of HMNY had reached $5.86 – up over 40% from Friday’s close. This morning the company issued a press release stating that Helios and Matheson Analytics Inc. Dr. E.G. Rajan, esteemed professor and research scientist, will be joining the organization as founding member and Chairman of its Science & Technology Development Board.

From the Helios and Matheson press release:

As Founder and President of the Pentagram Research Centre in Hyderabad, India, Dr. Rajan was presented the Gold Medal for his lifetime achievement in Teaching, Research and Industrial Development by former Indian President, Dr. APJ Abdul Kalam, in 2015. HMNY and Zone expect Dr. Rajan’s groundbreaking research in the fields of artificial intelligence and machine learning and his current impact on the field of computer vision to significantly enhance the functionality and reach of RedZone Map, merging RedZone Map’s currently available real time crime data reporting and safer navigation features with data science and technology.

Founded in 1983 and based in New York City and Bangalore, India, Helios and Matheson is a global information technology provider that services Fortune 500 clients. HMNY is not covered by any analysts and no price targets are available. However it may be important to note that both EPS and Sales figures were at their lowest points in 2015 since their highs in 2012 and 2013, respectively. Readers may wish to note that HMNY has a high level of insider ownership.

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.

Ticker Symbol HMNY
Last Price a/o 12:22 AM EST  $               4.83
Average Volume 363,800
Market Cap $19.9 million
Sales $8 million
Shares Outstanding 4.78 million
Share Float 0.98 million
Shortable Yes
Optionable No
Inside Ownership 36.80%
Short Float 20.97%
Short Interest Ratio 0.56
Quarterly Return -51.06%
YTD Return 199.30%
Year Return 85.70%

Oclaro, Inc (Nasdaq: OCLR) Shares Propelled by Acquisition Rumors

Oclaro Inc., Nasdaq: OCLR

Shares of San Jose, CA-based Oclaro Inc. are higher on rumors of an acquisition by Finisar Corporation (Nasdaq: FNSR). Shares of Oclaro Inc. trade on the Nasdaq under ticker symbol OCLR.

Oclaro Inc. develops and provides products for fast optical networks and high-speed interconnects that are enabling the next wave of streaming video, cloud computing, voice over IP and other high-speed and bandwidth-intensive applications. Oclaro operates R&D and chip fabrication facilities in the U.S., U.K., Italy, and Japan; in-house and contract manufacturing sites in China, Malaysia, and Thailand; and design, sales, and service organizations in each of the major regions around the world.

Oclaro’s financials are impressive. From their November 1, 2016 press release:

Results for the First Quarter of Fiscal 2017

  • Revenues were $135.5 million for the first quarter of fiscal 2017, and compare with revenues of $125.2 million in the fourth quarter of fiscal 2016, which was a 14 week quarter, and revenues of $87.6 million in the first quarter of fiscal 2016.
  • GAAP gross margin was 34.2% for the first quarter of fiscal 2017, compared with GAAP gross margin of 32.1% in the fourth quarter of fiscal 2016, and a GAAP gross margin of 25.9% in the first quarter of fiscal 2016.
  • Adjusted EBITDA was $25.6 million for the first quarter of fiscal 2017, compared with Adjusted EBITDA of $19.2 million in the fourth quarter of fiscal 2016, and Adjusted EBITDA of $4.2 million in the first quarter of fiscal 2016.
  • Cash, cash equivalents, and restricted cash were $229.3 million at October 1, 2016.

Nine analysts have OCLR ranked as a “Strong Buy” and one has it rated as a “Buy”. Price target consensus for OCLR is $12 however rumors peg the takeover price at $13. Investors should be aware that all 2016 insider transactions were sales – no management acquired shares of OCLR in 2016.

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.

Ticker Symbol OCLR
Last Price a/o 8:00 AM EST  $               9.40
Average Volume 5.19 million
Market Cap $1.43 Billion
Sales $456 million
Shares Outstanding 154.95 million
Share Float 154.95 million
Shortable Yes
Optionable Yes
Inside Ownership 2.90%
Short Float 8.38%
Short Interest Ratio 2.5
Quarterly Return 1.43%
YTD Return 165.23%
Year Return 166.76%

Update! Airborne Wireless Network (OTCQB: ABWN) Flying High Since SNU Report!

Airborne Wireless Network – OTCQB: ABWN

When we first wrote about ABWN a couple of weeks ago, it was trading around $0.80 per share. Today it is over $1.35. Our December 16th article follows:

Global internet connectivity is achieved through undersea cables along with ground-based fiber and satellites. Airborne Wireless Network is developing a new approach – an airborne digital highway.  The Company intends to create a high-speed broadband wireless network without towers or cables – they will do it by linking commercial aircraft in flight.  Each aircraft will act as an airborne router, sending, and receiving internet signals from one aircraft to the next and creating a digital superhighway in the sky. Airborne Wireless Network intends the network to be a high-speed broadband internet pipeline.

The Company intends to supply their capacity to wholesale carriers that already have customers such as internet providers and mobile phone companies. Once developed, the airborne network could provide low cost, high-speed connectivity to rural areas, island nations, ships at sea, oil platforms, in addition to connectivity to commercial and private aircraft in flight.

Airborne Wireless Networks holds a patent many in the industry consider highly valuable if the team can execute its plan. Impressively, they have secured Alex Sandel, co-founder of Packard Bell computers, as Chairman of its Advisory board. The company closed a $1,200,000 private placement funding on November 22, 2016.

However, ABWN is not a stock without considerable risk. This is a new technology in a highly competitive industry. Volumes of ABWN are currently weak – less than 22,000 today. Also of concern is that no analysts cover ABWN.

Still, if you have the appropriate appetite for risk ABWN, this is an innovative approach to a real need , internet connectivity, that most of the world cannot do without. ABWN closed today at $0.803.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock.

Globalstar Inc. (NYSE: GSAT) Receiving Good News

Globalstar, Inc. – NYSE: GSAT

Shares of GSAT are experiencing large volumes on the back of good news. Globalstar, Inc., traded on the NYSE under ticker GSAT, is a leading provider of mobile satellite voice and data services. The Company’s products include mobile and fixed satellite telephones, the innovative Sat-Fi satellite hotspot, satellite data modems, tracking devices and flexible service packages. 

On December 12, 2016 Long Island-based fleet management company Vehicle Tracking Solutions (VTS) announced that it will now be offering complete global coverage as part of a new strategic partnership with Globalstar, Inc. This follows news that General Electric (NYSE: GE) chose Globalstar to equip its employees with Globalstar’s SPOT Gen3 safety devices. Investors have reacted to the news in heavy volumes and pushed GSAT shares up almost 8% in early trading. Sales have increased each year for the Globalstar Inc since 2011 – from $72.8 million to $90.5 million. Meanwhile GSAT experienced a positive EPS ($0.07) for the first time in 2015. Conversely, GSAT is experiencing a high degree of short selling at the time of this writing.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock. The below data is provided without any guarantee of its accuracy.

Ticker Symbol NVCN
Last Price a/o 10:25 EST  $               0.90
Average Volume 3 million
Market Cap $902 million
Sales $95.2 million
Shares Outstanding 1.07 Billion
Share Float 309 million
Shortable Yes
Optionable Yes
Inside Ownership 0.10%
Short Float 15.80%
Short Interest Ratio 16.2
Quarterly Return -36.80%
YTD Return -41.70%
Year Return -51.72%

Majesco Entertainment (Nasdaq: COOL) Announces Merger

Market Mover Alert on Majesco Entertainment – Nasdaq ticker: COOL

Majesco Entertainment is up over 60% today on large volumes. Majesco Entertainment trades on the Nasdaq under the ticker COOL.

The company is based in Edison, NJ. Majesco develops video games for the mass market featuring casual and family oriented titles for console and mobile platforms. Majesco Entertainment is over 25 years old and has distribution through retailers such as WalMart, GameStop, Best Buy, Toys ‘R Us, and Target.

The shares of COOL seem to be responding to a merger agreement between Majesco and PalarityTE Inc. – a innovative regenerative medicine company that develops products for plastic and reconstructive surgeries. The merger has been approved by the board of directors of both companies.

Dr. Edward Swanson, COO, stated, “PolarityTE will change the landscape of regenerative medicine, beginning with our first target tissue: skin. Prior to the groundbreaking discovery by Dr. Lough, the world had never seen true regeneration of functional skin, including all layers and hair. Skin regeneration of this magnitude is thought of as the holy grail by burn surgeons.” 

COOL shares once traded above $120. At the time of this writing they are trading around $5.28. The merger may be an attempt to grow revenues as sales have slid from over $130 million in 2012 to a mere $6.7 million in 2015.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock. The below data is provided without any guarantee of its accuracy.

Ticker Symbol COOL
Last Price a/o 2:25 EST  $               5.16
Average Volume 24,700
Market Cap $8.7 million
Sales $1.7 million
Shares Outstanding 2.77 million
Share Float 1.9 million
Shortable Yes
Optionable No
Inside Ownership
Short Float 3.03%
Short Interest Ratio 2.33
Quarterly Return -14.60%
YTD Return -28.20%
Year Return -35.07%

 

 

Dataram Corp (Nasdaq: DRAM)

Dataram Corp. (Nasdaq: DRAM)

Dataram Corp. trades on the Nasdaq under the ticker DRAM. Dataram is a leading manufacturer of computer memory products and provides solutions that increase the performance and extend the life of computer hardware from well-known manufacturers such as Dell, Cisco, Fujitsu, HP, IBM, Lenovo and Oracle. Dataram’s memory products and solutions are sold worldwide to OEMs, distributors, value-added re-sellers and end users. In addition, the company manufactures and markets a line of Intel-approved memory products for sale to manufacturers and assemblers of embedded and original equipment. Seventy “Fortune 100” companies use their products and services. The corporate headquarters is located in Princeton, New Jersey and their manufacturing facility is located in the United States with sales offices in the United States, Europe and Asia.

Dataram has designed memory products for more than 50,000 systems with an established presence in the US and plans for expansion into Asia and Europe. It offers one of the most complete portfolios in the industry and the products range from energy efficient DDR4 modules to legacy SDR offerings. The growth strategy is to pursue organic and inorganic opportunities. This includes potential acquisitions such as US Gold Corp. Shipments, on a year-on-year basis, have been increased by more than 35% to an international customer base. The company has new leadership and improved corporate governance and enjoys a unique competitive advantage in its product offerings and services.

Between 1967 and 2008, the company was known as the gold standard for third-party memory providers but changed course in May 2008 and entered into non-synergistic and non-core growth opportunities. Over the last few months, the company realigned its mission to focus on pursuing its core business of memory products and solutions and delivering value to customers. The annual cash losses have been reduced from almost $3.8 million in FY 2015 to $0.4 million in FY 2016 before, non-cash and other charges and the projected revenue for FY 2016 is $25 million. Among the competitive advantages of the company are superior design and engineering services, including assistance with configuration, contract and flexible manufacturing to take care of special customer needs, including custom solutions, direct technical and engineering assistance and financial incentive programs, buyback, trade in/trade up, and cost analysis, allowing customers to optimise procurement and receive significant and measurable cost savings while allowing the management of end of life transition.

Important programs include lifetime warranty in which memory upgrades are warrantied to be free from defects in materials and workmanship, and conform to the manufacturer specifications for the system originally installed. Critical outreach liability insurance provides peace of mind to customers through prepaid technical support. The 24/7 on-site space program provides replacement for an immediate swap out in the case of memory failure. The prepaid on-site service support means that the service provider performs the determination of problems related to memory and resolving them using pre-purchased service hours. They have implemented a 24 x 7 technical support program and services the provider from inception to solution.

DRAM – outlook and growth opportunities

According to Markets and Markets, the non-volatile memory market is expected to touch $18.54 billion by the end of 2020 to with an estimated CAG are of 9.93% between 2016 and 2022. Statistical reports suggest that in 2010, revenue from DRAM sales came to $39.68 billion. Dataram’s immediate challenge is to increase channel inventory to counter sluggish demand. The balance of supply/capacity is underway and there are continuing declines in price. Demand is generally sluggish with variable enterprise demand while the cloud, mobile and OEM segments are more consistent. The longer-term challenges include the rebalancing of inventory levels to reflect market demand and advancement in technology. The low supply growth and the managed and balanced capacity, slowing technology migration and supplier consolidation are being countered by establishing deeper tier 1 supplier relationships, focused investment and calculated acquisitions. The company expects that over the next few months top-line revenue will grow to more than $50 million with improved margins, diversified offerings and increased capabilities.

The proposed acquisition of US Gold Corporation, which is a U.S.-based focused gold exploration and development company with two high potential projects are intended to diversify the activities of the company and reduce costs. The company believes that the business model will be diversified and risks will be mitigated, along with the strengthening of the balance sheet because US Gold has no debt and cash in the region of $4 million. The acquisition also improves the margins of the memory business because costs will be shared, thus reducing the duplication of shared services.

The bottom line

One reason for investors and potential investors to be pleased with DRAM stock is the announcement from the company that it has regained compliance for continued Nasdaq listing removing a major uncertainty through a reverse split of the stock. DRAM closed at $1.09 EOD November 18, 2016. As always, perform your own due diligence before making any investments.

Xcerra (Nasdaq: XCRA) – manufactures testing equipment for semiconductors and electronics manufacturers

Xcerra Corporation

Xcerra Corporation (NASDAQ: XCRA) is a provider of testing equipment for semiconductor and electronics manufacturers. It operates in six industry sectors: Semiconductors, Semiconductor Handlers, Contactors, PCB Testers, Probes/Pins and Fixtures.

For FY2016 Xcerra’s revenues in semiconductor testing were $252 million and $72 million in electronics manufacturing. 4th quarter FY2016 showed a financial performance better than forecast. The quarter showed sales growth of 11% over the preceding quarter.

For FY 2017, the key growth initiatives are accelerating the momentum of acquiring new customers and investment in the China market. Diamond product sales are now the top tester product accounting for almost 40% of total tester sales and the technology’s early adopters are now ramping up order volumes. Traction is being maintained in the flat panel display segment and several significant new customer opportunities are being targeted. The total test cell solution expands Diamond SAM by $12 million annually with approximately 250 testers have now been installed throughout the world. The new R&D centre in China is expected to enhance opportunities with key customers seeking closer collaboration. Full staffing is expected by the end of fiscal 2017 and there will be alignment of product development efforts within the Chinese market.

Company strategy

Xcerra is looking to establish InCarrier as the preferred WLCSP solution. Having successfully proven the capability for handling these devices with two customers. The initial production orders are expected within 90 days and the company will be first to market with a proven solution for manufacturing. The MT2168 advantages will be leveraged to gain market share and the innovative architecture produces simplified operation and increased efficiency of test cells. The high throughput reduces the cost of testing and the temperature performance has been proven across different ranges. About a dozen customers are expected to use MT2168 in FY 2017 compared to 2 in FY 2015 and five in FY 2016. The capture of the first customer in China is expected this fiscal year. Acquisitions will continue to remain a key part of the growth strategy and there is an active pipeline in several categories of products with the key focus on the markets for handling and contactor. The objectives are to complement or enhance the current portfolio, accelerate growth through global distribution and ensure that the acquisitions are accretive to earnings and margins.

Financial results

The financial results of the fourth quarter of FY 2016 showed that revenues were $91.2 million against the guidance of $89 million – $93 million, the gross margin was 46.2% against the guidance of 44% and the non-GAAP net income came to $0.12 per share against the guidance of $ 0.07 to $ 0.10. The financial results were in-line or above guidance, the gross margin was ahead of target because of the Tester Group contribution and the company generated a positive EBITDA of $ 9.2 million for the 10th consecutive quarter.

The business continues to be driven by Semiconductor test solutions which accounts for 81% of the business compared to 19% for electronics manufacturing solutions. The capital accounts for 55% compared to 45% for recurring revenues. The strong generation of EBITDA provides flexibility for investments and provides funding for strategic acquisitions and stock repurchase programs. The business outlook and the guidance for the first quarter of FY 2017 is revenue of $ 80 million-$ 84 million, gross margin of 43%, non-GAAP net income of between ($ 0.03) and $ 0.01 and the EBITDA at the midpoint of the guidance is expected to be around $ 3 million.

The bottom line

Zacks Investment Research has upgraded XCRA from a sell rating to a hold rating. A number of other analysts have reaffirmed by ratings with a price objective of $8.25 and $10. XCRA currently has a consensus target price of $ 8.06. On average, the focus from analysts is an EPS of $0.18 for the current fiscal year. Several large institutional investors have adjusted their holdings. As always, conduct your own due diligence before considering any investment.

Lionbridge Technologies Inc. (Nasdaq: LIOX) Moving the Global Language Translation Space

Lionbridge Technologies Inc.

Lionbridge Technologies Inc. (NASDAQ: LIOX) provides translation, online marketing, global content management and application testing solutions. It operates in three segments:

  • Global Language and Content (GLC),
  • Global Enterprise Solutions (GES) and
  • Interpretation Services.

Global Language and Content (GLC) Services adapts online content, interactive media, marketing and support information to meet the needs of international markets. Content translation services help communication with global customers, partners and employees by combining writing and translation services, design and production, with management, automation technology, industry-specific knowledge and process optimization techniques for multilingual content solutions. Global Enterprise Solutions (GES) provides enterprise testing services, some of which are offered to clients under the VeriTest brand. These include enterprise-scale managed test teams, functional testing, multimedia testing, globalization testing and application testing and application certification. These services help to manage over 100,000 professionals across approximately 100 countries. Lionbridge offers telephonic, onsite, and simultaneous interpretation services in over 360 languages to federal, state and local government agencies, and businesses that require experienced linguists to facilitate communication.

Second-quarter LIOX results

Lionbridge Technologies reported results for the second quarter with record revenue of $144.2 million and non-GAAP EPS of $0.14 per share. $144.2 million in revenues was a 6% increase compared to the previous quarter. The GAAP net income of $3.9 million was $0.07 per share, which was an increase of $ 3.6 million or $ 0.06 per share and a decrease of $ 1.6 million, or $0.02 per share year-on-year, primarily because of a tax variance of $2 million ($ 0.03 per share) and an unfavourable variance of $1.3 million ($0.02 per share) in non-operating expenses related to currency effects on the balance sheet. Non-GAAP adjusted earnings of $8.3 million ($0.14 per share) was an increase of $2.7 million ($0.05 per share) and a decline of $ 3.5 million ($0.05 per share) – primarily because of unfavourable tax treatments and other expense items.

Adjusted EBITDA was $ 13.7 million which was an increase of $3.3 million and flat year-on-year. Cash flow from operations was $7.8 million – a 53% increase from the same quarter of the previous year and the ending cash balance was $25.5 million. The company repurchased 740,000 shares of common stock for an aggregate price of $3.3 million and 2.6 million shares of common stock for a price of $11.8 million year-on-year.

Lionbridge Technologies has recently secured several significant new customer contracts, including a leading online education and training company, a large insurance provider, a leading company in voice and data communication and a Danish construction planning company. CEO Rory Cowan said that the first half of 2016 saw the reorganisation of worldwide sales and operations based on targeted geography sectors in geography services continue to expand. The company enters the second half of the year in a position of strength in operations with the completion of market-based reorganisation and a more efficient cost structure for better profitability and cash flow. Thus, strong earnings are expected for the remainder of the year and into 2017.

Other developments

The company has received patents for its GeoFluent real-time translation solutions. The proprietary linguistic player allows the company to tailor each machine’s translation to reflect the specific use of language and messaging. This ability allows linguistic experts to apply a best of breed approach for the selection of technology and broad-based language coverage with the highest possible translation quality. The enhancements earlier in the year have broadened the solutions including multichannel customer care with voice, chat, e-mail and other features. In addition, the product has received an award for customer product of the year.

Earlier, the Independent market research firm Common Sense Advisory and awarded Lionbridge Technologies the top ranking among the largest 100 language service providers in the world, recognising it as a world leader in the $40.27 billion industry. Research finds that the demand for language services continues to be strong. As organisations continue to use more languages, the firm predicts that the language services industry will see continued demand and grow to $45 billion by 2020. The factors driving the demand includes continued growth in global e-commerce, the Internet of Things and access to language services in the governmental areas dealing with immigration and public safety.

The bottom line on LIOX

Many analysts regard LIOX as a growth stock for several reasons. Earnings growth in this case is historically more than 30% and the projected EPS growth rate is over 90% compared to the industry growth rate of 6.4%. The sales/asset ratio is 2.09, which means that the company generates more than two dollars in sales for every dollar in assets, compared to the industry average of just over 1. Moreover, sales growth is projected by some to be more than 17% this year compared to the industry average of just over 2%. Always perform your own due diligence before making any decisions on an investment and realize that technology firms may sometimes be a risky investment.

Social Reality, Inc. (Nasdaq: SRAX) provides automation tools for the digital advertising market.

Social Reality, Inc. (Nasdaq: SRAX) provides tools for the automation of the digital advertising market. It sells digital media advertising campaigns to advertising agencies and brands; sells media inventory through real-time bidding exchanges; and it sells and the SRAX Social platform and related media. It contracts with Web and mobile publishers to sell their media inventory on the RTB exchanges by having the publisher enlist on its portal as a publishing partner.

SRAX Social is a social media and loyalty platform which allows brands to launch and manage their social media initiatives and SRAX Social allows marketers to select from a range of pre-created applications and launch these applications and loyalty programs on their social media and websites. SRAX MD is an advertisement targeting and data platform for healthcare brands and medical content publishers. Healthcare and pharmaceutical publishers utilize the platform for yield optimization, audience extension campaigns and the re-targeting of their healthcare professional audience. SRAX APP is a mobile app platform that allows publishers and content owners to launch native mobile applications.

The company has announced its up-listing to NASDAQ Capital Market commencing on October 13, 2016 under the ticker symbol SRAX. Earlier, the company had announced a reverse stock split in the ratio of 1 for 5 – this was implemented to facilitate the up-listing on NASDAQ. CEO Christopher Migalino said that the stock split will allow trading on NASDAQ and is a major company milestone. The company expects many benefits from the listing on an exchange including increased exposure to new investors and reinforcing the brand and identity.

Earnings results

The company reported an EPS of $0.21 per share for the second quarter of 2016 compared to the Thomson Reuters consensus estimate of $0.19 per share. Highlights include revenues of $9.25 million for the quarter, other income of $3 million and net income of $1.8 million. The operational highlights include completion of the shopping marketing platform for brands, social media management platform entering beta, significant demand added to the sell side platform, the integration of a number of large mobile-only providers and a number of demand partners.

Net income of $1.87 million was $0.06 per share, compared to $0.02 per share for the same period of the previous year. Cash and cash equivalents were $674,820 as of June 30, 2016 while current assets and total assets were listed at $9.35 million and $26.5 million with total liabilities and current liabilities at $19.85 million and $12.18 million. The stockholders equity as of June 30, 2016, was $6.7 million.

The Bottom Line

One investment research brokerage has upgraded the stock from a sell rating to a buy rating with a target price of $6.75. The 50-day moving average price is $6.39 and the 200-day moving average price is $7.20. It had a 52-week low of $5.05 and a 52-week high of $9.90. Digital services firms can sometimes become the industry darling but can also be a shooting star as new technology renders old methods outdated. Before considering this as an investment option, you should conduct your own due diligence and consider your tolerance for risky investments.