The move to divest the augme "patent factory" is a natural next step in the new direction of the company which was headed by RH. I believe this move was one more step that he started but IB completed. We now have over $7M in OPEX savings from our books which should help us get to the BE a bit faster given our top line continue at the same forecasted rate. The most important aspect of this news is that we didn't get rid of the baby with the bath water. We maintain the brain trust with those who have created our Patent portfolio for our future monitization efforts. Furthermore, as Bradly and his team continue to develop patents in the mobile space they would have to reference our patents any possible settlement might include our patents if they are building on certain functionality that we have claimed.
So good job to all those involved in the process of making this happen including Jason A., RH, and IB.
Sentiment: Strong Buy
Love your math. I assume you got 7 million by taking the prior savings target of 6 and added this $1 and came up with 7. I think that this 1 million in savings is part of the 6 million dollar target.
Again this is legacy PA. Just shoot 6 people and a million gets saved!
They need to shoot lots more. I think RH was shown the door as he was not moving fast enough in the savings effort. We shall see when the numbers come out some day.
Of course it does, the great disconnect between what the market thinks is good news vs what you pumpers are getting your thong wet about are miles apart. So now you guy have plans to bring in more retail investors? Will hell, you better hire OJ's "A Team" if you stand any chance in trying to buy them in. Your lies and deceit will only get you so far. In this economy, suckers will ave to do some OT.
Xt...apparently we have either hit or near hitting of the total out of pocket expense from Augme on these litigation with GP. If so, it would be a bad move for use to move from GP in mist of these on going litigation. And if such life time cap is for ALL future licencing/litigation then using of NPE does not make any sense unless its only for smaller infringers out there that is not worth GP's time.
Well now. AUGT has basically jettisoned the IP division. Just wrote it off. Kaput. No sale. No licensing. No revenues. And now you spin it into a positive? Boy. 10 cents is essentially guaranteed now.
I think the market already discounted the patents as worthless
I dont see how getting rid of the cost center associated with it is anything but positive.
The SP at these levels represents an undervalued growth company (albeit with many risks) and a dirt cheap call option on the patents.
I am typically very critical of AUGT, but even I see money to be made here.
I understand your negative bias. Unless HC completely misses the opportunities in the fast growing space, I see some legs under this one. Probably sooner than later.
We believe it a very sound move. Retaining their talents while alleviating a $1 million in annual cost savings can only be considered financially judicious. We look for more color on additional plans on the IP to emerge over the next month or two. We continue to believe the shares represent extremely deep value at current levels.
Here is a an analyst comment from this am. Analyst maintains a $1.75 target reiterating their buy rating.
Comments on AUGT: $0.33 OP $1.75 PT
• This morning, AUGT announced the divestiture of its non-core (primarily patent related) Tucson division.
• The divestiture does not include the sale or license of any of its IP.
• The company estimates that the divestiture should save AUGT ~$1M annually and is incremental to its recently completed restructuring plan (which was expected to save the company ~$6M annually). Timing is unclear, but we assume the cost savings start as of the beginning of its new FY, March 1st.
• We don’t view the divestiture as a surprise, given the company’s increasing focus on its operational Hipcricket business, and believe the incremental cost savings should be a positive for the company.
You must wear the rosiest, rose-colored glasses ever made. Your constant cheerleading has gotten so laughable that I literally chuckle every time I see you've authored a new post.
i had you ignore, but the entertainment factor is just too good to pass up. so - i'll give you a thumbs up for that
LOL!! you guys just keep coming up with new IDs! Dude I dont give f about paid basher opinions. With only 3 post including this one in the history of your ID its funny that u know me so well! lol....How about you "keep" me on the iggy and I just add this alias to mine?? lol Say hello to the other IDs there.