GREY:ESPAF - Post by User
Post by
93Darkhorse93on May 02, 2017 6:51pm
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Post# 26195294
Q1: Core Software Revenue up 106% with Cash Hoard of 41M…
Q1: Core Software Revenue up 106% with Cash Hoard of 41M…Another Real Solid Q to start 2017, on the analyst front looks right in line but under the hood I like the progress they are making. Especially with Gross Margin and Software Revenue Growth.
Favourite line from the press release- “In Q1 we progressed our sales pipeline further and believe we are well positioned to become a partner to major service providers for their next generation Pat TV platforms.”
The sequential QoQ drawback was to be expected and was modeled in due to the one time Q4 payment but looking more comparatively to prior Q1 up 106% on its critical Software revenue growth, the Arris acquisition was key to the transition to continue to ramp its high margin software revenue which the market isn’t giving it credit for.
Love to see the continued progress in Gross margin improvement up to 74.2% up from 63.8%, that more than 10% improvement in Gross margin represents more than $4,0000,000 in incremental annualized EBITDA!!!
With 40M cash in the bank essentially getting the business for 50M or under 1.0x 2018 sales is ridiculous for a business that generates revenue gross margins as such a high clip.
Serious takeout candidate if the stock price doesn’t start to move up because the underlying assets are too valuable at this level.
LONG