Q4: 145% Revenue Growth on Massive Gross Margin Expansion… My apologies for the not getting this up right away, but wow! I though it was a typo when I first saw that revenue number.
Revenue up 145%, Gross Margin up to 82% (up 16% YoY), EBITDA up over 400% and huge EPS of 0.068 when the street was looking for a loss.
Everyone, including myself has been waiting for the turn when ESP will finally turn the business after 18-24 months in the cellar and this is it. I just love how dumb this makes Rogers look for bailing on ESP technology as Espial growth continues to explode overseas.
The street is only looking low 40sM in revenue for 2017 and that looks real to low now. I see the generating revenue in the 50-55M dollar range for 2017. With 25% EBITDA margins which I think is reasonable get you EBITDA of 13.125M in EBITDA.
Put a 10-14x range for an EBITDA multiple given the reoccuring nature of revenues and you get to a share price of 3.60 – 5.00/share or easy case for a double based on fundamental improvement seen in Q4 and a revaluation of the stock given a return to profitability and ridiculously high gross margin of the underlying business.
SO LONG