iSIGN Media Solutions Inc V.ISD.H

new wins coming...rerating to 1.50 soon

[ISIGNEASY10BAGGER]

Agreement with Keyser Finalized; Orders to Follow
ISD announced it has finalized its agreement with Keyser Industries to
handle the installation and deployment of the Smart Antenna throughout
the Americas for the Quick Service Restaurant (QSR) end market.
Keyser is a leader in indoor and outdoor signage with a full engineering staff,
call center, technical support and nationwide installation network. By
partnering with Keyser to perform the installation, ISD will benefit from faster
deployment schedules and lower capital that would be required to build out
the installation infrastructure and support staff itself. We believe Keyser is an
excellent partner given the company’s expertise in the QSR industry,
which is evident from its relationships with major brands like
McDonald’s, who the company has been working with for over 40 years.
? ISD is now in a position to quickly scale up the business, which we
believe can be cash flow positive in the next 12-months. Over the last
several months the company has partnered with Graphic Media for
distribution, Keyser to handle the installation and Baylor University to
collect, analyze and re-package the location-based data. We are
encouraged by ISD’s recent partnerships and 6,000 unit purchase
order for National Oil, which should begin to generate high margin
recurring revenue in 2013.
? ISD is just beginning to monetize its solution and we expect strong
growth in 2013 with the potential for significant new orders early in
the new year. While orders will provide initial hardware revenue, we
believe investors should focus on the recurring high margin revenue ISD
will collect for hosting the service. Customers will typically sign a three
year agreement leading to improved revenue visibility as installations
increase. Once the data is collected, analyzed and repackaged by
Baylor Univeristy, ISD will also share in this high margin revenue.
? ISD is just starting to monetize its software solution, which should
drive revenue and earnings growth over the next 12 months. We are
reiterating our BUY recommendation and $0.85 per share price target. As
new deployments are announced ISD should benefit from high margin
annual recurring revenue, which should drive positive operating leverage.
ISD should be bought ahead of new orders in 2013 and provides
investors with a way to leverage the growing mobile advertising and
big data opportunity that is just beginning to play out.