Espial Group (
TSX:ESP,
Stock Forum), the globally leading on-demand TV software solution supplier, could be coming to a screen near you and may already be staring you straight in the face as its provision of digital TV and IPTV software solutions to cable MSOs, and telecommunications operators as well as Smart TV manufacturers currently reaches over 35 million consumers worldwide.
It’s climb since 2013 has been steep as the Ottawa-based company continued to sign deals with both operators and Smart TV manufacturers and open offices worldwide. It has a tight share structure of 23.3m shares with a relatively low market cap of $67.1 million and the distinct potential much more growth as Smart TVs and digital on-demand content takes over the entertainment market.
The company celebrated
good news today with a 107% increase in Q2 revenue to $4.7 million from $2.3 million reported in the matching 2013 quarter. Six-month revenue was also up 101% to $9.7 million.
Espial management continues to make smart decisions and if they can firmly plant themselves as the de facto technology provider for this explosive sector, they are in for even a bigger ride. The anticipation of Apple actually manufacturing and providing a TV to go along with their Apple TV may be a bit of a damper on the company’s potential, but until Apple rolls out with product, Espial is in a pretty good position.
On the other end of the spectrum,
Urthecast (
TSX:UR,
Stock Forum), is in a struggle to maintain its hold on the imagination of shareholders as it deals with accuracy issues with its ballyhooed high-resolution 1-metre camera currently mounted on the Russian side of the International Space Station.
The company is going to have to put together a solution for the HD camera that may not arrive until the fall of this year, considerably delaying the commissioning of the unit and the sale of its streamed data.
Urthecast tries to remain calm by stating that the medium resolution camera is online and able to provide content to customers, but the whole sales pitch was based on delivery of HD material with the other camera as a relatively low-end option.
Let’s get back to the fact the units are mounted on the Russian side…
This might present a problem with current tensions coming out of the Ukraine that don’t, at present, seem to be going away. What if international sanctions or Russian reactions escalate to the point where the company is denied access to the cameras while in the midst of repairs delaying commissioning even further? Shares have plummeted ~59% in the last five months leaving the company with a market cap of $71.0 million.
With a net loss of $3,868,960 reported in the last quarter, how long will the company be able to hold out before scrambling for more financing, especially since it forecast that it would have to up operations costs in 2014? Of course they thought that their reduction in property and equipment costs would offset this increase, but this assumption was made before Urthecast ran into its most recent HD camera issues that may very well negate the anticipated offset.
I wouldn’t put any more money into this company until the dust settles, as I am sure there will be more market fallout before it has a chance to right itself. Speaking of which, shares dropped another 9.68% in trading today to $1.12 per share.
TSX tech stocks in review:
|
July 22, 2014, 4:20 PM EDT |
|
|
| Symbol |
Cost/Share |
Last |
Change |
% Change |
| T.ESP |
2.89 |
2.900 |
+0.330 |
+12.84% |
| T.HMM.A |
1.45 |
1.490 |
+0.090 |
+6.43% |
| V.SYD |
0.37 |
0.240 |
+0.010 |
+4.35% |
| T.RC |
2.71 |
2.650 |
+0.100 |
+3.92% |
| T.MNW |
11.59 |
11.640 |
+0.270 |
+2.37% |
| T.AVO |
23.96 |
23.950 |
+0.550 |
+2.35% |
| T.SW |
23.69 |
21.110 |
+0.420 |
+2.03% |
| T.SW |
21.19 |
21.110 |
+0.420 |
+2.03% |
| T.SVC |
3.53 |
3.570 |
+0.070 |
+2.00% |
| V.SIO |
0.15 |
0.270 |
+0.005 |
+1.89% |
| T.DBO |
0.265 |
0.275 |
+0.005 |
+1.85% |
| T.CDV |
4.20 |
4.190 |
+0.070 |
+1.70% |
| T.AJX |
0.77 |
0.770 |
+0.010 |
+1.32% |
| T.KXS |
16.20 |
16.200 |
+0.200 |
+1.25% |
| T.DH |
31.01 |
31.010 |
+0.370 |
+1.21% |
| C.GNR |
1.25 |
0.960 |
+0.010 |
+1.05% |
| T.DHX |
4.66 |
7.200 |
+0.070 |
+0.98% |
| T.NLN |
1.00 |
1.140 |
+0.010 |
+0.88% |
| T.RDL |
3.69 |
3.680 |
+0.030 |
+0.82% |
| T.CMG |
14.63 |
14.500 |
+0.090 |
+0.62% |
| T.GIB.A |
38.03 |
37.990 |
+0.170 |
+0.45% |
| T.SMA |
2.60 |
2.620 |
+0.010 |
+0.38% |
| T.WIN |
3.36 |
3.370 |
+0.010 |
+0.30% |
| T.DSG |
15.08 |
15.020 |
+0.040 |
+0.27% |
| T.OTC |
51.41 |
51.410 |
+0.130 |
+0.25% |
| V.FLY |
0.67 |
0.400 |
0.000 |
0.00% |
| V.PKK |
0.055 |
0.040 |
0.000 |
0.00% |
| V.TNG |
0.165 |
0.110 |
0.000 |
0.00% |
| T.NII |
0.49 |
0.490 |
0.000 |
0.00% |
| T.CSU |
261.00 |
261.000 |
-0.750 |
-0.29% |
| T.MDA |
83.81 |
83.800 |
-0.250 |
-0.30% |
| T.PUR |
7.86 |
7.890 |
-0.060 |
-0.75% |
| T.BB |
10.68 |
10.630 |
-0.100 |
-0.93% |
| T.WEW |
0.385 |
0.385 |
-0.005 |
-1.28% |
| T.ET |
17.20 |
16.990 |
-0.270 |
-1.56% |
| T.EXF |
5.01 |
4.990 |
-0.080 |
-1.58% |
| T.DW |
4.70 |
4.650 |
-0.080 |
-1.69% |
| T.CLS |
12.48 |
12.540 |
-0.220 |
-1.72% |
| T.EFL |
1.12 |
1.130 |
-0.020 |
-1.74% |
| T.ESL |
33.86 |
33.710 |
-0.740 |
-2.15% |
| T.LMP |
21.01 |
20.600 |
-0.500 |
-2.37% |
| V.SEV |
0.42 |
0.400 |
-0.010 |
-2.44% |
| T.NXJ |
1.93 |
2.000 |
-0.050 |
-2.44% |
| T.RKN |
5.23 |
5.160 |
-0.130 |
-2.46% |
| T.CCV |
1.45 |
1.450 |
-0.050 |
-3.33% |
| V.SY |
0.38 |
0.300 |
-0.015 |
-4.76% |
| T.HDX |
0.305 |
0.300 |
-0.015 |
-4.76% |
| V.ANY |
7.14 |
9.050 |
-0.470 |
-4.94% |
| T.DWI |
2.13 |
2.100 |
-0.110 |
-4.98% |
| T.UR |
2.19 |
1.120 |
-0.120 |
-9.68% |
|