Good entry price. Glad they got this in the document and everyone read it:
Item 2.02 Results of Operations and Financial Condition.
Based on information currently available, WidePoint Corporation (the “Company”) estimates that its revenue for the quarter ended September 30, 2014 will be in the range of $14.3 million to $14.7 million. The Company estimates loss before provision for income taxes for the quarter ended September 30, 2014 will be in the range of $0.5 million to $1.2 million. These estimates represent the most current information available to management. The Company’s normal financial closing and financial statement preparation process is in its preliminary stages. As a result, the Company’s actual financial results could be different and those differences could be material.
I was surprised that there wasn't more reported as well. I guess everyone was waiting for the FCC report to be issued which drove the coverage over the past week. Let's see how much they talk about it on the call.
Pretty interesting read. Intrado software glitch brought down 911 PSAPs. TCS identified the problem and alerted participants. See bridge and tunnel investor
Hope the golf game stays crisp. Mine has been in transition for about 5 yrs lol. Still working on it. I'm always a Card fan as I HATE the Cubs. I'm a Pale Hose guy and I'd love to see the Royals in the Series. best
Hey Budro. Good to see this board never changes with the constant management criticism caused in no small part by a lack of understanding by those doing the criticizing.
- Agree that the 2nd lab was a strategic decision that needed to be made. It was undoubtedly expensive but from a risk mitigation perspective, not having redundant capacity for a CA based lab would have been disastrous should their SD location been idled for any reason. Also having the ability to now have a much lower processing cost sets them up much better with launch of Visibiliti. Had they waited we would have another year of waiting for lower cost testing and concerns about capacity.
- Also the issues that others keep mentioning about the lack of IVD status just continues to show they don't really understand the impact of FDA approval. Management made a choice which makes sense.
Hold down the fort
I believe they disclosed in the 8k that payment was due 10 days after signing of agreement on 9/30. With the payment made in October, this will hurt Q4 cash flow thought the $3.2m royalty payment which would have been paid in Q3 will help them this quarter.
There are several TCS presentations spanning this year for presentations to Colorado, FCC, Michigan etc. The number of PSAPs and population served has grown dramatically in last 6 months. Also worth noting is that the number of PSAPs in progress is well larger than currently served. See investor forum at bridgetunnelinvestor. Sorry we can't link
Very valid point and the issue is even larger because the same declining ownership trend for institutions is repeated with mutual funds. Combined that puts way too much pressure on retail investors.
Bought some more at $17.50. 2.5% discount to BBEP exchange formula. BBEP is selling at 3% discount to secondary pricing.
SA Blog post
If anyone is interested, I'm helping to start an investors forum to post research and discuss stock in a moderated fashion. Grew tired of the spam on Yahoo and the limitations regarding posting links or uploading files. I started a tread on TSYS and intend to add content as I have time. Search for bridgeandtunnelinvestor.
Nice analogy! Per the cc:
The Quest agreement already incorporates VisibiliT and note the comment in the Q&A. Likely will be small for the remainder of this year but it seems clear that Quest intends to provide this test to cash payors upon launch:
We expect to begin processing test for Quest under the test stand on agreement later in this third quarter, enabling us to broaden the distribution of our MaterniT21 PLUS test as well as to provide access to our just announced VisibiliT test.
VisibiliT with Quest, obviously they have access to that, should they desire to do test send out for that
The VisibiliT test will be selectively rolled out in the United States initially on a cash basis. We plan to work with physicians and payors in the U.S. and we will be ready for broader distribution and utilization when coverage policies are adopted.
As we discussed in the first quarter, we expect a new molecular diagnostic code for the next sequencing test specific for fetal aneuploidies to be implemented in January of 2015. We expect this new code to be posted on the AMA website in the third quarter. This new code will enable commercial and government payors to identify the unique nature of MaterniT21 PLUS test, which should help facilitate reimbursement process and reduce the time required for third-party payors to process claims.
Overall the quarter was just ok. They don't disclose the amount of revenue or earnings from the IP monetization. I suspect that without it, the quarter would have been a disaster but just a guess. Going forward they appear to be relying more and more on being a patent licensing company. Normally I'd consider that a huge negative, but in their case I wouldn't consider them a patent troll. They have legit IP that is based upon their business and innovation. Going after infringers or trying to license it while they wait for NG911 and Govt to pick up is a smart move.
They done a good job addressing their debt load and cash flows. Their expense management is better but still bloated for the revenue footprint. The lack of any Q&A is embarrassing and shows how little interest there is in their current operations. They need to show they can grow the top line to generate more enthusiasm. Having said that, they likely can grow the bottom line through IP and cost cutting with a little top line growth. If they can generate more top line traction it could get interesting considering the low valuation.
Note the announcement today is likely more important than the call itself. Indoor location services has a lot of potential and NextNav is an important player.
Not much to add. I did check around with some others in the defense arena. Seems as though the government sector has indeed bottomed with a modest uptick in order flow. Still weak but improving as a sector. Talked to one defense contractor who was starting to hire again, though much as temporary contracts rather than full employees with benefits. This individual wasn't all all surprised by TSYS comments about the bottom being behind them. He also wasn't surprised that the order flow from the previous contract vehicle wins in 2013 haven't materialized yet, and added that while an advantage to TSYS, there is no guarantee these ceiling amount will get awarded within the contract period.....if at all.
So are they also the culprits behind the selloff of all the other small cap bios that are similarly down today? IBB down almost 2%. Stocks I track with similar selloffs between 3-6% today:
Nice to see some of the old timers posting again. I'm still hanging around with a full position. Sold my trading shares and now am just waiting to hear an update. Interestingly I was contacted by the managing editor for SA asking if I would write a new article, given my prior interest. When I looked into it I could find an angle to write about given how little we know about what is happening. This run up is with virtually no analyst or retail support which seems like a bullish sign, but nothing more than a coin flip to me.
I'll also look to sell prior to the call if it runs much more. Been burned too many times, but right now it has a nice trend line with little resistance. The break through 3.50 should mean there is a more room absent negative newsflow or a bad tape.
FYI I occasionally post a blog on TSYS in my instablog on SA. I got too bored with the yahoo flames and spammers so decided it wasn't worth it. Anyone registered (aliases are ok) on SA can send me a private message or comment on my blogs.