This is a positive as an embedded SIM card can only be activated and provisioned remotely, which is EVOL's business. It is highly likely that an embedded SIM card will gain a higher market share initially in "wearables" and will build share over the next 3-5 years if adopted by both Apple and Samsung and becomes an industry "standard." It may also gain large share in M2M devices.
Have owned and liked this stock since they did the sale/leaseback and unlocked the cash. The stock has started to really move higher (over 150% in last year) and would go even higher, but there are some headwinds (won't bother me as I am a long-term holder):
a.) Liquidity...only about 7mm shares in the float (insiders, ESOP and two shareholders own the rest) with the usual bid/ask spread one needs to overcome for an OTC stock.
b.) They continue to have too many $$ of their assets and continue to lose $$ on their "namesake" product.
c.) Between Ulta and Walmart they account for 40%+ of their total business for all products and Walmart can be very "pushy" on suppliers.
d.) They "rent" the two product lines that are minting them money and give them such strong growth and profitability; one of the contracts runs, I recall (could be off by a year) to 2016/2017 and the other to 2017 with the usual mutual renewals etc. If they are doing well for these companies, no sweat...but if they were to lose either one, they would be back at $.50-$.75 in a heartbeat.