This is a clown show. They paid $18 million for eGistics just 20 months ago, have been projecting $100 million revenue within the past year, have been talking about more acquisitions in the past six months, and are perpetually telling shareholders that this was a bad quarter, but the quarters ahead look great.. Now they are closing offices, laying off employees, and the market cap is just $29 million.
Perfectly positioned in a market growing at an astronomical rate in a recovering economy, they have failed. Grandiose thinking and misleading representations are not leadership. They are near criminal acts by egotistical people.
Just eight months to go in 2016. I continue to predict the company will be sold this year. Management cannot execute, so they will just exit.
One of our problems is that TISA has traded 12k shares and MITK has traded 2 million shares. Although there is a sense that a turnaround is indeed occurring, given it's history, TISA management will have to present hard evidence that the turn has really occurred. Let's hope so - that's why the next conference call is so important.
MITK increase in market cap today is more than the total market cap of TISA - incredible. Hard to believe we are in the same industry. MITK at 10X revenues versus less than 1X revenues for TISA.
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Bernard et al..... send your learned comments to management as they are so very interested
MITK market cap 229 million, TISA market cap 29 million. Sales not too different. Would be a bite sized acquisition even for MITK
I do not see this as spending to save. Previously they spent to open new offices and hire new employees, claiming that would boost revenue. Now they are closing offices and letting employees go claiming that will save expenses. This is just more of the "Today's earnings are disappointing, but tomorrow's will be better" stuff that we have heard for many years now. Once again, they will be reporting a loss.
Just when you think there might be a turn in their business, aggressive sellers emerge to take any momentum out of the stock. Obviously the first quarter was not good but fortunately that is history. It is imperative that Mr. Schrader stick his neck out and give investors some guidance going forward and present a well thought out vision as to why the turnaround is here and now. Keeping investors in the dark after so many years in the wilderness will just not cut it anymore. Either Mr. Schrader, after 2 years as CEO, is capable of leading this company or it must be sold. This conference call coming out is make it or break it for this management team.
It is hard to tell what is going on, Benarnd. $700,000 is just a week's revenue. Investors are outraged that growth has totally stopped after the company positioned itself in the passing lane, made a costly acquisition, and promised dramatic growth, while the recession receded. Management is dreading the next conference call, knowing full well that no one gives their promises credence any more. I think this is just the company being more transparent about routine business because they have nothing more significant to report.
If you can save 4.3 million yearly by spending 1.1 million up front - it sounds like something that should have been done long ago. At least Yossi seems to be putting some discipline into the corporate structure of TISA - something that the "blowhard, incompetent" Mr. Nakar could never do.
Interesting appendix from the 20-f:
" NOTE 15: SUBSEQUENT EVENT (UNAUDITED)
On March 8, 2016, the Company announced that it initiated global restructuring actions, in order to decrease its cost levels in the comings years. The company plans to terminate the contracts of 33 employees and contractors, with estimated cost saving of $ 2,187.
In addition, the company plans to cut costs by merging geographical regions and decreasing various other expenses. Total saving in 2016 is estimated to $ 4,328. The restructuring cost in 2016 will result in $1,174 that will be incurred in the first quarter of 2016."
Look like some there are some modifications @merger bonus. From the 20-f:
"Mr. Fresneda will be entitled to a cash bonus in the amount of $1,300,000 in the event of a merger or acquisition of the Company that reflects a valuation of the Company of more than $90,000,000. "
Not sure what is responsible for the sudden increase in orders [was it the product refresh, new partners, etc.] but TISA does seem to be gaining some traction for the first time in many years. They also seem much more intent on cutting costs under their new CFO Yossi. We will know for sure when they cut Mr. Nakar's bloated salary. Could actually be an interesting conference call this time, especially if they give some guidance towards a more optimistic future. The first quarter is history, hopefully these new contracts [especially the mobile banking] point to a much more optimistic future. The conference call will tell us a lot.
Don't worry. TISA will double from this price. Unfortunately at double the price it will only $3.00. Which is way below the $4.00 i paid for it 2 years ago. I'm so screwed.