RE: trade activityQIS Capital Comments:
From a marketing and sales development standpoint, IP Applications is starting to get a solid response from its SaaS online marketing efforts. Web marketing is a key element of growing this high-value business, and total hits and sales leads from the company’s two main sites www.IPApplications.com and www.SaaSAutomation.com are presently growing rapidly. The sites are beginning to generate specific sales inquiries as well.
The financial results for Q2 were dominated by excess staffing capacity in the help desk business. Several client companies showed neutral or negative growth during the quarter which created a challenging situation for IPX which had boosted capacity to meet projected demand. The company is continuing to address these issues into Q3 to improve financial results.
Several corporate acquisitions or mergers in the SaaS marketplace have transpired over the last few months, all completed at price to sales multiples of 4 to 5 times. This suggests significant value for IPX, which trades at just under 1 times sales, as the company works to increases its market share in the industry.