Bookings were good; backlog a bit flat, but that has never been the most precise future measure of performance. I am amazed that they were able to bring so much down to the bottom line. Clearly dividend is safe and the full year's performance is boffo. Not one of these garbage "adjusted" this or "adjusted" that but a real honest-to-goodness $1.6mm AFTER fully taxed GAAP...for $.14/share ($.13 diluted). Full year was $.48 ($.47 fully diluted GAAP earnings fully taxed.) Growth of 18% revenue YOY and net income 47%.
Very straight-forward and transparent presentation and answered tons of questions in a very direct and easy-to-understand way. They called out what was great, what was just good and what they need to work on. Definitely a breath of fresh air compared to other conference calls. They also disclosed that they had won a Tier 1 customer that they had no previously disclosed (at the customer's request). Tier 1 are BIG and so the $$ will come from that in the coming years. Each time they get a "win" it is like an annuity. Their DSA is growing at a huge rate, which offsets the levelling in TSA. Definitely great value and, of course, a very shareholder-friendly company. They implied that Q1 would be a good comp over last year's relatively soft Q1 so some smooth sailing ahead for a few months. Also, they again pointed out that one needs to look at them on an annual basis and not Q to Q.
Dead money and guidance was not particularly exciting. When you evaluate ZIX remember to pro-forma them as though they are being taxed if you want to compare their PE to others; grossly overvalued with no earnings lift. Also looks like the secured e-mail function may no longer be carved out for separate security which would cut them out of the game. If you really want to invest in "security" then MobileEye, Cyberark and Palo Alto Networks are the big 3 going forward.
Why Evolving Systems (EVOL) Might Be a Diamond in the Rough - Tale of the Tape
By Zacks Equity Research
17 hours ago
It can be very difficult to find companies that are both flying under the radar, and still might have potential for gains. Many times, stocks are off investors’ radar screens for a reason, though there are some hidden gems that could be worth uncovering by those with a high risk tolerance.
Why Evolving Systems (EVOL) Might Be a Diamond in the Rough - Tale of the Tape Zacks 17 hrs ago
Zacks Rank #1 Additions for Friday - Tale of the Tape Zacks 4 days ago
One way to find these underappreciated stocks is by looking at companies that haven’t seen their share prices move higher lately, but have observed analysts raising earnings estimates for their stock. This trend could signal that investors haven’t quite embraced the rising estimate story yet, but that the potential for a big move higher is definitely there.
One such company that looks well positioned for a solid gain, but has been overlooked by investors lately, is Evolving Systems Inc. (EVOL). This Communication Network Software stock has actually seen estimates rise over the past month for the current fiscal year by about 65.9%. But that is not yet reflected in its price, as the stock gained only 0.7% over the same time frame.
You should not be concerned about the price remaining muted going forward. This year’s expected earnings growth over the prior year is 34.7%.
And you think 24,000 shares means anything. That is $225,000 worth of stock. Company has a market cap of $100,000,000. Great buying opportunity for a LONG-TERM investor.
Yes, their business is doing well, but remember that it is "lumpy" and thus needs to be looked at on a 4-quarter basis to account for new account set ups and large one-time "fillups" on Sim Cards for existing customers.
However, their EBITDA for the first 3 quarters is already a half-million higher than the full year last year, so the full year will certainly look strong.
Not sure if it was "unloaded" or "bought" as the price action immediately before would imply there was a "buyer" who was as motivated (or perhaps moreso) than the seller.
59,000 shares is not exactly a bunch of excited institutional investors packing into a momo stock and small traders wouldn't be caught dead trading an illiquid stock like this. YES, it is worth a higher price, but clearly there was someone highly motivated to sell from $10 down to $8 over quite a period of time and that stock was being sucked up also, in higher volumes. Were those buyers "downward momo" investors?? Don't overdo the analysis on the daily trading. Focus more on what the company does, how its business and competitors are doing and what Dupper says (as he is as honest and straight as they come.) One part of their business is stagnant and not very promising, but the growth part is very exciting. There are several companies like RedKnee and Synchronoss who could buy them at a nice price and still have the acquisition be accretive to them on day one.
P.S. If it is up today (Monday, April 6) then it would it would show a really committed buyer because it looks like today is going to be a train wreck.
Missed out on what? The fall in after hours or the slow liquidation coming in the next few weeks as analysts downgrade based on the company's lowered guidance. If you listened to the conference call you will see what is coming as they were incredulous that ZIXI keeps touting double digit growth in the "space" but delivers single digit growth as a company.
You clearly don't have a clue about PE. Try taking their REAL earnings (GAAP is there for a reason) and then taxing them fully (they have NOLs so are not paying taxes) and they earned $.07/share last year...so they are selling at over 50 times PE