Friday, November 05, 2021

Information Services (III)
Another Strong Quarter: 3Q21 Highlights

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Strong 3Q21 Results. Record third quarter revenue of $71.1 million rose 15% y-o-y and exceeded our and consensus estimate of $67 million. ISG reported net income of $4.4 million, or $0.09 per share, up from $2.1 million, and $0.04, respectively, last year. Adjusted EPS was $0.12 and adjusted EBITDA totaled $10.2 million, up 24% y-o-y. We had forecast EPS of $0.06, adjusted EPS of $0.10, and adjusted EBITDA of $8.3 million. Consensus adjusted EPS was $0.09 and adjusted EBITDA was $8.4 million.


Market Momentum Continuing.  The quarter’s results reflect ongoing momentum across ISG’s markets. Enterprises continue to accelerate their technology investments coming out of the pandemic, with a strong shift to cloud-based platforms and all things digital, ISG’s strengths …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Information Services Group Announces Third-Quarter 2021 Results

 

STAMFORD, Conn.–(BUSINESS WIRE)– Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, today announced financial results for the third quarter ended September 30, 2021.

“ISG delivered another outstanding financial performance in Q3, building on the firm’s momentum in the first half,” said Michael P. Connors, chairman and CEO. “We achieved double-digit revenue and adjusted EBITDA growth in Q3, highlighted by our 22 percent revenue growth in the Americas. Our ISG NEXT operating model continues to resonate in this robust demand environment—driving greater account expansion opportunities and increasing profitability, margins and operating cash flow.”

Connors said ISG sees market momentum continuing into 2022. ”Enterprises of all types are accelerating their technology investments coming out of the pandemic. We are seeing a strong shift to cloud-based platforms and all things digital as our clients address the requirements of remote working, engaging with customers, improving resiliency and enhancing the quality of business overall,” he said.

ISG is ideally positioned to meet client needs, Connors added. “We continue to be the industry’s go-to firm for operating model design and sourcing solutions that allow our clients to harness the full potential of their provider ecosystems. Combined with our industry-leading research, governance solutions and SaaS platforms, we offer our clients all the capabilities they need to become world-class, digitally driven enterprises.”

Third-Quarter 2021 Results

Reported revenues for the third quarter were a record $71.1 million, up 15 percent versus last year (up 14 percent in constant currency). Currency translation positively impacted reported revenues by $0.7 million versus the prior year. Reported revenues were a record $42.8 million in the Americas, up 22 percent versus the prior year; $20.1 million in Europe, down 4 percent versus the prior year on a reported basis and down 5 percent in constant currency, and a record $8.1 million in Asia Pacific, up 42 percent versus the prior year on a reported basis and up 38 percent in constant currency.

ISG reported third-quarter operating income of $7.3 million, more than double its operating income of $3.0 million in the third quarter of 2020. The firm also more than doubled its third-quarter net income and earnings per share, reporting $4.4 million and $0.09, respectively, versus net income of $2.1 million and earnings per share of $0.04 in the prior year. Net income margin (calculated by dividing net income by reported revenues) doubled to 6 percent, from 3 percent in the prior year.

Adjusted net income (a non-GAAP measure defined below under “Non-GAAP Financial Measures”) for the third quarter was $5.9 million, or $0.12 per share on a fully diluted basis, compared with adjusted net income of $5.2 million, or $0.10 per share on a fully diluted basis, in the prior year’s third quarter.

Third-quarter adjusted EBITDA (a non-GAAP measure defined below under “Non-GAAP Financial Measures”) was $10.2 million, up 24 percent from the third quarter last year. Adjusted EBITDA margin (a non-GAAP measure calculated by dividing adjusted EBITDA by reported revenues) was 14 percent, up 100 basis points from the prior year.

Other Financial and Operating Highlights

ISG generated $18.5 million of cash from operations in the third quarter, compared with $10.3 million in the prior year, and $39.5 million year to date. The firm’s cash balance totaled $54.5 million at September 30, 2021, up 43 percent from $38.1 million in the prior year. ISG paid down $1.1 million of debt during the quarter, repurchased $2.1 million of shares and paid dividends of $1.5 million. As of September 30, 2021, ISG had $75.6 million in debt outstanding, compared with $79.9 million at the end of the third quarter last year. The firm’s gross debt-to-adjusted-EBITDA ratio of 2.0 is at a record low.

2021 Fourth-Quarter Revenue and Adjusted EBITDA Guidance

“For the fourth quarter, ISG is targeting revenues of between $67 million and $69 million and adjusted EBITDA of between $9 million and $10 million,” said Connors. “This guidance reflects the current demand environment, tempered somewhat by the lingering impact of Covid, particularly in Europe, and the normal impact of the year-end holiday season. We will continue to monitor the macroeconomic environment and adjust our business plans accordingly.”

Third-Quarter Dividend

The ISG Board of Directors declared a fourth-quarter dividend of $0.03 per share, payable on December 17, 2021, to shareholders of record on December 3, 2021.

Conference Call

ISG has scheduled a call for 9 a.m., U.S. Eastern Time, Friday, November 5, 2021, to discuss the company’s third-quarter results. The call can be accessed by dialing 1-877-502-9276; or, for international callers, by dialing 001-313-209-4906. The access code is 5609449. A recording of the conference call will be accessible on ISG’s website (www.isg-one.com) for approximately four weeks following the call.

Forward-Looking Statements

This communication contains “forward-looking statements” which represent the current expectations and beliefs of management of ISG concerning future events and their potential effects. Statements contained herein including words such as “anticipate,” “believe,” “contemplate,” “plan,” “estimate,” “target,” “expect,” “intend,” “will,” “continue,” “should,” “may,” and other similar expressions, are “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future results and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated. Those risks relate to inherent business, economic and competitive uncertainties and contingencies relating to the businesses of ISG and its subsidiaries including without limitation: (1) failure to secure new engagements or loss of important clients; (2) ability to hire and retain enough qualified employees to support operations; (3) ability to maintain or increase billing and utilization rates; (4) management of growth; (5) success of expansion internationally; (6) competition; (7) ability to move the product mix into higher margin businesses; (8) general political and social conditions such as war, political unrest and terrorism; (9) healthcare and benefit cost management; (10) ability to protect ISG and its subsidiaries’ intellectual property or data and the intellectual property or data of others; (11) currency fluctuations and exchange rate adjustments; (12) ability to successfully consummate or integrate strategic acquisitions; (13) outbreaks of diseases, including coronavirus, or similar public health threats or fear of such an event; and (14) engagements may be terminated, delayed or reduced in scope by clients. Certain of these and other applicable risks, cautionary statements and factors that could cause actual results to differ from ISG’s forward-looking statements are included in ISG’s filings with the U.S. Securities and Exchange Commission. ISG undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

Non-GAAP Financial Measures

ISG reports all financial information required in accordance with U.S. generally accepted accounting principles (GAAP). In this release, ISG has presented both GAAP financial results as well as non-GAAP information for the three months and nine months ended September 30, 2021 and September 30, 2020. ISG believes that evaluating its ongoing operating results will be enhanced if it discloses certain non-GAAP information. These non-GAAP financial measures exclude non-cash and certain other special charges that many investors believe may obscure the user’s overall understanding of ISG’s current financial performance and the Company’s prospects for the future. ISG believes that these non-GAAP measures provide useful information to investors because they improve the comparability of the financial results between periods and provide for greater transparency of key measures used to evaluate the Company’s performance.

ISG provides adjusted EBITDA (defined as net income plus interest, taxes, depreciation and amortization, foreign currency transaction gains/losses, non-cash stock compensation, change in contingent consideration, acquisition-related costs, severance, integration and other expense and financing-related costs), adjusted net income (defined as net income plus amortization of intangible assets, non-cash stock compensation, foreign currency transaction gains/losses, change in contingent consideration, acquisition-related costs, severance, integration and other expense, financing-related costs, and write-off of deferred financing costs, on a tax-adjusted basis), adjusted net income per diluted share and selected financial data on a constant currency basis which are non-GAAP measures that the Company believes provide useful information to both management and investors by excluding certain expenses and financial implications of foreign currency translations, which management believes are not indicative of ISG’s core operations. These non-GAAP measures are used by ISG to evaluate the Company’s business strategies and management’s performance.

We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP financial measure, excludes the impact of year-over-year fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the Company’s performance. We calculate constant currency percentages by converting our current and prior-periods local currency financial results using the same point in time exchange rates and then compare the adjusted current and prior period results. This calculation may differ from similarly titled measures used by others and, accordingly, the constant currency presentation is not meant to be a substitution for recorded amounts presented in conformity with GAAP, nor should such amounts be considered in isolation.

Management believes this information facilitates comparison of underlying results over time. Non-GAAP financial measures, when presented, are reconciled to the most closely applicable GAAP measure. Non-GAAP measures are provided as additional information and should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the forward-looking non-GAAP estimates contained herein to the corresponding GAAP measures is not being provided, due to the unreasonable efforts required to prepare it.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Information Services Group, Inc.
Condensed Consolidated Statement of Income and Comprehensive Income
(unaudited)
(in thousands, except per share amounts)
								Three Months Ended September 30,						Nine Months Ended September 30,
									2021			2020			2021			2020
Revenues								$	71,095		$	61,635		$	208,263		$	182,739
Operating expenses
Direct costs and expenses for advisors									43,249			36,762			127,412			111,539
Selling, general and administrative									19,236			20,318			58,768			60,792
Depreciation and amortization									1,347			1,581			3,962			4,641
	Operating income								7,263			2,974			18,121			5,767
Interest income									65			61			196			188
Interest expense									(538)			(687)			(1,794)			(2,890)
Foreign currency transaction gain (loss)									1			(66)			(2)			14
	Income before taxes								6,791			2,282			16,521			3,079
Income tax provision									2,370			227			4,570			1,772
	Net income							$	4,421		$	2,055		$	11,951		$	1,307
Weighted average shares outstanding:
	Basic								48,751			47,880			48,521			47,599
	Diluted								51,510			49,908			51,713			49,546
Earnings per share:
	Basic							$	0.09		$	0.04		$	0.25		$	0.03
	Diluted							$	0.09		$	0.04		$	0.23		$	0.03

Information Services Group, Inc.
Reconciliation from GAAP to Non-GAAP
(unaudited)
(in thousands, except per share amounts)
								Three Months Ended September 30,						Nine Months Ended September 30,
									2021			2020			2021			2020
Net income								$	4,421		$	2,055		$	11,951		$	1,307
Plus:
	Interest expense (net of interest income)								473			626			1,598			2,702
	Income taxes								2,370			227			4,570			1,772
	Depreciation and amortization								1,347			1,581			3,962			4,641
	Change in contingent consideration								47			48			113			48
	Acquisition-related costs (1)								18			100			(14)			350
	Severance, integration and other expense								41			1,362			1,341			1,730
	Financing-related costs								–			–			–			92
	Foreign currency transaction (gain) loss								(1)			66			2			(14)
	Non-cash stock compensation								1,499			2,159			5,075			6,544
Adjusted EBITDA								$	10,215		$	8,224		$	28,598		$	19,172
Net income								$	4,421		$	2,055		$	11,951		$	1,307
Plus:
	Non-cash stock compensation								1,499			2,159			5,075			6,544
	Intangible amortization								643			913			2,001			2,618
	Change in contingent consideration								47			48			113			48
	Acquisition-related costs (1)								18			100			(14)			350
	Severance, integration and other expense								41			1,362			1,341			1,730
	Financing-related costs								–			–			–			92
	Write-off of deferred financing costs								–			–			–			167
	Foreign currency transaction (gain) loss								(1)			66			2			(14)
	Tax effect (2)								(719)			(1,487)			(2,726)			(3,691)
Adjusted net income								$	5,949		$	5,216		$	17,743		$	9,151
Weighted average shares outstanding:
	Basic								48,751			47,880			48,521			47,599
	Diluted								51,510			49,908			51,713			49,546
Adjusted earnings per share:
	Basic							$	0.12		$	0.11		$	0.37		$	0.19
	Diluted							$	0.12		$	0.10		$	0.34		$	0.18
(1)	Consists of expenses from acquisition-related costs and non-cash fair value adjustments on pre-acquisition contract liabilities.
(2)	Marginal tax rate of 32%, reflecting U.S. federal income tax rate of 21% plus 11% attributable to U.S. states and foreign jurisdictions.

Information Services Group, Inc.
Selected Financial Data
Constant Currency Comparison
							Three Months										Three Months
	Three Months			Constant			Ended				Three Months			Constant			Ended
	Ended			currency			September 30, 2021				Ended			currency			September 30, 2020
	September 30, 2021			impact			Adjusted				September 30, 2020			impact			Adjusted
Revenue	$	71,095		$	(985)		$	70,110			$	61,635		$	(307)		$	61,328
Operating income	$	7,263		$	(254)		$	7,009			$	2,974		$	(126)		$	2,848
Adjusted EBITDA	$	10,215		$	(270)		$	9,945			$	8,224		$	(152)		$	8,072
							Nine Months										Nine Months
	Nine Months			Constant			Ended				Nine Months			Constant			Ended
	Ended			currency			September 30, 2021				Ended			currency			September 30, 2020
	September 30, 2021			impact			Adjusted				September 30, 2020			impact			Adjusted
Revenue	$	208,263		$	(4,047)		$	204,216			$	182,739		$	2,354		$	185,093
Operating income	$	18,121		$	(950)		$	17,171			$	5,767		$	742		$	6,509
Adjusted EBITDA	$	28,598		$	(1,011)		$	27,587			$	19,172		$	736		$	19,908

 

Source: Information Services Group, Inc.

Information Services Group Announces Third-Quarter 2021 Results

 

STAMFORD, Conn.–(BUSINESS WIRE)– Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, today announced financial results for the third quarter ended September 30, 2021.

“ISG delivered another outstanding financial performance in Q3, building on the firm’s momentum in the first half,” said Michael P. Connors, chairman and CEO. “We achieved double-digit revenue and adjusted EBITDA growth in Q3, highlighted by our 22 percent revenue growth in the Americas. Our ISG NEXT operating model continues to resonate in this robust demand environment—driving greater account expansion opportunities and increasing profitability, margins and operating cash flow.”

Connors said ISG sees market momentum continuing into 2022. ”Enterprises of all types are accelerating their technology investments coming out of the pandemic. We are seeing a strong shift to cloud-based platforms and all things digital as our clients address the requirements of remote working, engaging with customers, improving resiliency and enhancing the quality of business overall,” he said.

ISG is ideally positioned to meet client needs, Connors added. “We continue to be the industry’s go-to firm for operating model design and sourcing solutions that allow our clients to harness the full potential of their provider ecosystems. Combined with our industry-leading research, governance solutions and SaaS platforms, we offer our clients all the capabilities they need to become world-class, digitally driven enterprises.”

Third-Quarter 2021 Results

Reported revenues for the third quarter were a record $71.1 million, up 15 percent versus last year (up 14 percent in constant currency). Currency translation positively impacted reported revenues by $0.7 million versus the prior year. Reported revenues were a record $42.8 million in the Americas, up 22 percent versus the prior year; $20.1 million in Europe, down 4 percent versus the prior year on a reported basis and down 5 percent in constant currency, and a record $8.1 million in Asia Pacific, up 42 percent versus the prior year on a reported basis and up 38 percent in constant currency.

ISG reported third-quarter operating income of $7.3 million, more than double its operating income of $3.0 million in the third quarter of 2020. The firm also more than doubled its third-quarter net income and earnings per share, reporting $4.4 million and $0.09, respectively, versus net income of $2.1 million and earnings per share of $0.04 in the prior year. Net income margin (calculated by dividing net income by reported revenues) doubled to 6 percent, from 3 percent in the prior year.

Adjusted net income (a non-GAAP measure defined below under “Non-GAAP Financial Measures”) for the third quarter was $5.9 million, or $0.12 per share on a fully diluted basis, compared with adjusted net income of $5.2 million, or $0.10 per share on a fully diluted basis, in the prior year’s third quarter.

Third-quarter adjusted EBITDA (a non-GAAP measure defined below under “Non-GAAP Financial Measures”) was $10.2 million, up 24 percent from the third quarter last year. Adjusted EBITDA margin (a non-GAAP measure calculated by dividing adjusted EBITDA by reported revenues) was 14 percent, up 100 basis points from the prior year.

Other Financial and Operating Highlights

ISG generated $18.5 million of cash from operations in the third quarter, compared with $10.3 million in the prior year, and $39.5 million year to date. The firm’s cash balance totaled $54.5 million at September 30, 2021, up 43 percent from $38.1 million in the prior year. ISG paid down $1.1 million of debt during the quarter, repurchased $2.1 million of shares and paid dividends of $1.5 million. As of September 30, 2021, ISG had $75.6 million in debt outstanding, compared with $79.9 million at the end of the third quarter last year. The firm’s gross debt-to-adjusted-EBITDA ratio of 2.0 is at a record low.

2021 Fourth-Quarter Revenue and Adjusted EBITDA Guidance

“For the fourth quarter, ISG is targeting revenues of between $67 million and $69 million and adjusted EBITDA of between $9 million and $10 million,” said Connors. “This guidance reflects the current demand environment, tempered somewhat by the lingering impact of Covid, particularly in Europe, and the normal impact of the year-end holiday season. We will continue to monitor the macroeconomic environment and adjust our business plans accordingly.”

Third-Quarter Dividend

The ISG Board of Directors declared a fourth-quarter dividend of $0.03 per share, payable on December 17, 2021, to shareholders of record on December 3, 2021.

Conference Call

ISG has scheduled a call for 9 a.m., U.S. Eastern Time, Friday, November 5, 2021, to discuss the company’s third-quarter results. The call can be accessed by dialing 1-877-502-9276; or, for international callers, by dialing 001-313-209-4906. The access code is 5609449. A recording of the conference call will be accessible on ISG’s website (www.isg-one.com) for approximately four weeks following the call.

Forward-Looking Statements

This communication contains “forward-looking statements” which represent the current expectations and beliefs of management of ISG concerning future events and their potential effects. Statements contained herein including words such as “anticipate,” “believe,” “contemplate,” “plan,” “estimate,” “target,” “expect,” “intend,” “will,” “continue,” “should,” “may,” and other similar expressions, are “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future results and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated. Those risks relate to inherent business, economic and competitive uncertainties and contingencies relating to the businesses of ISG and its subsidiaries including without limitation: (1) failure to secure new engagements or loss of important clients; (2) ability to hire and retain enough qualified employees to support operations; (3) ability to maintain or increase billing and utilization rates; (4) management of growth; (5) success of expansion internationally; (6) competition; (7) ability to move the product mix into higher margin businesses; (8) general political and social conditions such as war, political unrest and terrorism; (9) healthcare and benefit cost management; (10) ability to protect ISG and its subsidiaries’ intellectual property or data and the intellectual property or data of others; (11) currency fluctuations and exchange rate adjustments; (12) ability to successfully consummate or integrate strategic acquisitions; (13) outbreaks of diseases, including coronavirus, or similar public health threats or fear of such an event; and (14) engagements may be terminated, delayed or reduced in scope by clients. Certain of these and other applicable risks, cautionary statements and factors that could cause actual results to differ from ISG’s forward-looking statements are included in ISG’s filings with the U.S. Securities and Exchange Commission. ISG undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

Non-GAAP Financial Measures

ISG reports all financial information required in accordance with U.S. generally accepted accounting principles (GAAP). In this release, ISG has presented both GAAP financial results as well as non-GAAP information for the three months and nine months ended September 30, 2021 and September 30, 2020. ISG believes that evaluating its ongoing operating results will be enhanced if it discloses certain non-GAAP information. These non-GAAP financial measures exclude non-cash and certain other special charges that many investors believe may obscure the user’s overall understanding of ISG’s current financial performance and the Company’s prospects for the future. ISG believes that these non-GAAP measures provide useful information to investors because they improve the comparability of the financial results between periods and provide for greater transparency of key measures used to evaluate the Company’s performance.

ISG provides adjusted EBITDA (defined as net income plus interest, taxes, depreciation and amortization, foreign currency transaction gains/losses, non-cash stock compensation, change in contingent consideration, acquisition-related costs, severance, integration and other expense and financing-related costs), adjusted net income (defined as net income plus amortization of intangible assets, non-cash stock compensation, foreign currency transaction gains/losses, change in contingent consideration, acquisition-related costs, severance, integration and other expense, financing-related costs, and write-off of deferred financing costs, on a tax-adjusted basis), adjusted net income per diluted share and selected financial data on a constant currency basis which are non-GAAP measures that the Company believes provide useful information to both management and investors by excluding certain expenses and financial implications of foreign currency translations, which management believes are not indicative of ISG’s core operations. These non-GAAP measures are used by ISG to evaluate the Company’s business strategies and management’s performance.

We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP financial measure, excludes the impact of year-over-year fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the Company’s performance. We calculate constant currency percentages by converting our current and prior-periods local currency financial results using the same point in time exchange rates and then compare the adjusted current and prior period results. This calculation may differ from similarly titled measures used by others and, accordingly, the constant currency presentation is not meant to be a substitution for recorded amounts presented in conformity with GAAP, nor should such amounts be considered in isolation.

Management believes this information facilitates comparison of underlying results over time. Non-GAAP financial measures, when presented, are reconciled to the most closely applicable GAAP measure. Non-GAAP measures are provided as additional information and should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the forward-looking non-GAAP estimates contained herein to the corresponding GAAP measures is not being provided, due to the unreasonable efforts required to prepare it.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Information Services Group, Inc.
Condensed Consolidated Statement of Income and Comprehensive Income
(unaudited)
(in thousands, except per share amounts)
								Three Months Ended September 30,						Nine Months Ended September 30,
									2021			2020			2021			2020
Revenues								$	71,095		$	61,635		$	208,263		$	182,739
Operating expenses
Direct costs and expenses for advisors									43,249			36,762			127,412			111,539
Selling, general and administrative									19,236			20,318			58,768			60,792
Depreciation and amortization									1,347			1,581			3,962			4,641
	Operating income								7,263			2,974			18,121			5,767
Interest income									65			61			196			188
Interest expense									(538)			(687)			(1,794)			(2,890)
Foreign currency transaction gain (loss)									1			(66)			(2)			14
	Income before taxes								6,791			2,282			16,521			3,079
Income tax provision									2,370			227			4,570			1,772
	Net income							$	4,421		$	2,055		$	11,951		$	1,307
Weighted average shares outstanding:
	Basic								48,751			47,880			48,521			47,599
	Diluted								51,510			49,908			51,713			49,546
Earnings per share:
	Basic							$	0.09		$	0.04		$	0.25		$	0.03
	Diluted							$	0.09		$	0.04		$	0.23		$	0.03

Information Services Group, Inc.
Reconciliation from GAAP to Non-GAAP
(unaudited)
(in thousands, except per share amounts)
								Three Months Ended September 30,						Nine Months Ended September 30,
									2021			2020			2021			2020
Net income								$	4,421		$	2,055		$	11,951		$	1,307
Plus:
	Interest expense (net of interest income)								473			626			1,598			2,702
	Income taxes								2,370			227			4,570			1,772
	Depreciation and amortization								1,347			1,581			3,962			4,641
	Change in contingent consideration								47			48			113			48
	Acquisition-related costs (1)								18			100			(14)			350
	Severance, integration and other expense								41			1,362			1,341			1,730
	Financing-related costs								–			–			–			92
	Foreign currency transaction (gain) loss								(1)			66			2			(14)
	Non-cash stock compensation								1,499			2,159			5,075			6,544
Adjusted EBITDA								$	10,215		$	8,224		$	28,598		$	19,172
Net income								$	4,421		$	2,055		$	11,951		$	1,307
Plus:
	Non-cash stock compensation								1,499			2,159			5,075			6,544
	Intangible amortization								643			913			2,001			2,618
	Change in contingent consideration								47			48			113			48
	Acquisition-related costs (1)								18			100			(14)			350
	Severance, integration and other expense								41			1,362			1,341			1,730
	Financing-related costs								–			–			–			92
	Write-off of deferred financing costs								–			–			–			167
	Foreign currency transaction (gain) loss								(1)			66			2			(14)
	Tax effect (2)								(719)			(1,487)			(2,726)			(3,691)
Adjusted net income								$	5,949		$	5,216		$	17,743		$	9,151
Weighted average shares outstanding:
	Basic								48,751			47,880			48,521			47,599
	Diluted								51,510			49,908			51,713			49,546
Adjusted earnings per share:
	Basic							$	0.12		$	0.11		$	0.37		$	0.19
	Diluted							$	0.12		$	0.10		$	0.34		$	0.18
(1)	Consists of expenses from acquisition-related costs and non-cash fair value adjustments on pre-acquisition contract liabilities.
(2)	Marginal tax rate of 32%, reflecting U.S. federal income tax rate of 21% plus 11% attributable to U.S. states and foreign jurisdictions.

Information Services Group, Inc.
Selected Financial Data
Constant Currency Comparison
							Three Months										Three Months
	Three Months			Constant			Ended				Three Months			Constant			Ended
	Ended			currency			September 30, 2021				Ended			currency			September 30, 2020
	September 30, 2021			impact			Adjusted				September 30, 2020			impact			Adjusted
Revenue	$	71,095		$	(985)		$	70,110			$	61,635		$	(307)		$	61,328
Operating income	$	7,263		$	(254)		$	7,009			$	2,974		$	(126)		$	2,848
Adjusted EBITDA	$	10,215		$	(270)		$	9,945			$	8,224		$	(152)		$	8,072
							Nine Months										Nine Months
	Nine Months			Constant			Ended				Nine Months			Constant			Ended
	Ended			currency			September 30, 2021				Ended			currency			September 30, 2020
	September 30, 2021			impact			Adjusted				September 30, 2020			impact			Adjusted
Revenue	$	208,263		$	(4,047)		$	204,216			$	182,739		$	2,354		$	185,093
Operating income	$	18,121		$	(950)		$	17,171			$	5,767		$	742		$	6,509
Adjusted EBITDA	$	28,598		$	(1,011)		$	27,587			$	19,172		$	736		$	19,908

 

Source: Information Services Group, Inc.

Friday, November 05, 2021

Information Services (III)
Another Strong Quarter: 3Q21 Highlights

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Strong 3Q21 Results. Record third quarter revenue of $71.1 million rose 15% y-o-y and exceeded our and consensus estimate of $67 million. ISG reported net income of $4.4 million, or $0.09 per share, up from $2.1 million, and $0.04, respectively, last year. Adjusted EPS was $0.12 and adjusted EBITDA totaled $10.2 million, up 24% y-o-y. We had forecast EPS of $0.06, adjusted EPS of $0.10, and adjusted EBITDA of $8.3 million. Consensus adjusted EPS was $0.09 and adjusted EBITDA was $8.4 million.


Market Momentum Continuing.  The quarter’s results reflect ongoing momentum across ISG’s markets. Enterprises continue to accelerate their technology investments coming out of the pandemic, with a strong shift to cloud-based platforms and all things digital, ISG’s strengths …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

 

Voyager Digital to Integrate Avalanche Staking, NFTs, and DeFi Applications

 

Voyager to enable AVAX token transfers and staking, increasing crypto utility and wealth-building choices for Voyager customers

Voyager Digital Ltd. (“Voyager” or the “Company”) (TSX: VOYG) (OTCQX: VYGVF) (FRA: UCD2), one of the fastest-growing, publicly traded cryptocurrency platforms in the United States, is integrating with Avalanche to include transfers and staking of AVAX into its brokerage platform. The expansion also entails a cross-ecosystem development effort of the Voyager platform and select Avalanche-based DeFi and NFT applications.

Avalanche is the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality. Ethereum developers can quickly and easily build on Avalanche to create powerful, reliable, and secure applications. Voyager’s initiative with Avalanche includes the development of Avalanche staking and transfer capabilities for Voyager customers. It will also give Voyager customers access to decentralized finance tools, NFTs, and decentralized applications in the Voyager ecosystem, developed on the Avalanche public blockchain (AVAX).

“By building out a wide range of new Avalanche capabilities on the Voyager platform, we are creating more wealth-building tools for our customers, including the ability to transfer and stake AVAX, Avalanche’s native token, to earn rewards,” said Steve Ehrlich, CEO and Co-founder of Voyager. “We’re also looking to increase DeFi and NFT functionalities on our platform through Avalanche’s high-performing technology, which instantly processes thousands of transactions within a second. We’re excited for this collaboration and can’t wait to roll out joint products on our platform.”

“We’re thrilled to be working with Voyager and its innovative team to expand products and services related to the Avalanche platform,” said John Nahas, Vice President of Business Development at Ava Labs. “By enabling individuals to earn rewards on staked AVAX, deposit and withdraw AVAX, and easily access Avalanche DeFi and NFT products on the Voyager app, Voyager is allowing its users to tap into the rapidly growing Avalanche DeFi ecosystem directly from its trusted platform.”


About Voyager Digital Ltd.
Voyager Digital Ltd. (TSX: VOYG; OTCQX: VYGVF; FRA: UCD2) is a fast-growing, publicly traded cryptocurrency platform in the United States founded in 2018 to bring choice, transparency, and cost efficiency to the marketplace. Voyager offers a secure way to trade over 60 different crypto assets using its easy-to-use mobile application, and earn rewards up to 12 percent annually on more than 30 cryptocurrencies. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe. To learn more about the company, please visit https://www.investvoyager.com.

The TSX has not approved or disapproved of the information contained herein.

SOURCE Voyager Digital, Ltd.

Press Contacts

Voyager Digital Ltd.
Michael Legg
Chief Communications Officer
(212) 547-8807
mlegg@investvoyager.com

Voyager Public Relations Team
pr@investvoyager.com

 

Voyager Digital to Integrate Avalanche Staking, NFTs, and DeFi Applications

 

Voyager to enable AVAX token transfers and staking, increasing crypto utility and wealth-building choices for Voyager customers

Voyager Digital Ltd. (“Voyager” or the “Company”) (TSX: VOYG) (OTCQX: VYGVF) (FRA: UCD2), one of the fastest-growing, publicly traded cryptocurrency platforms in the United States, is integrating with Avalanche to include transfers and staking of AVAX into its brokerage platform. The expansion also entails a cross-ecosystem development effort of the Voyager platform and select Avalanche-based DeFi and NFT applications.

Avalanche is the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality. Ethereum developers can quickly and easily build on Avalanche to create powerful, reliable, and secure applications. Voyager’s initiative with Avalanche includes the development of Avalanche staking and transfer capabilities for Voyager customers. It will also give Voyager customers access to decentralized finance tools, NFTs, and decentralized applications in the Voyager ecosystem, developed on the Avalanche public blockchain (AVAX).

“By building out a wide range of new Avalanche capabilities on the Voyager platform, we are creating more wealth-building tools for our customers, including the ability to transfer and stake AVAX, Avalanche’s native token, to earn rewards,” said Steve Ehrlich, CEO and Co-founder of Voyager. “We’re also looking to increase DeFi and NFT functionalities on our platform through Avalanche’s high-performing technology, which instantly processes thousands of transactions within a second. We’re excited for this collaboration and can’t wait to roll out joint products on our platform.”

“We’re thrilled to be working with Voyager and its innovative team to expand products and services related to the Avalanche platform,” said John Nahas, Vice President of Business Development at Ava Labs. “By enabling individuals to earn rewards on staked AVAX, deposit and withdraw AVAX, and easily access Avalanche DeFi and NFT products on the Voyager app, Voyager is allowing its users to tap into the rapidly growing Avalanche DeFi ecosystem directly from its trusted platform.”


About Voyager Digital Ltd.
Voyager Digital Ltd. (TSX: VOYG; OTCQX: VYGVF; FRA: UCD2) is a fast-growing, publicly traded cryptocurrency platform in the United States founded in 2018 to bring choice, transparency, and cost efficiency to the marketplace. Voyager offers a secure way to trade over 60 different crypto assets using its easy-to-use mobile application, and earn rewards up to 12 percent annually on more than 30 cryptocurrencies. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe. To learn more about the company, please visit https://www.investvoyager.com.

The TSX has not approved or disapproved of the information contained herein.

SOURCE Voyager Digital, Ltd.

Press Contacts

Voyager Digital Ltd.
Michael Legg
Chief Communications Officer
(212) 547-8807
mlegg@investvoyager.com

Voyager Public Relations Team
pr@investvoyager.com

Tuesday, November 02, 2021

Comtech (CMTL)
Acacia Research Offers to Buy Comtech for $30/Share

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Acquisition Offer. Yesterday, Acacia Research (NASDAQ:ACTG) made an unsolicited and nonbinding offer to acquire Comtech for $790 million in cash, or $30 per share. The offer price is a 39% premium to Comtech’s closing share price on Friday. CMTL shares jumped 26% to close at $27.20 on the news. Comtech’s Board is evaluating the proposal in consultation with independent advisors.


Who Is Acacia? Historically, Acacia’s legacy business was investing in, licensing, and enforcing patented technologies.  More recently, the Company has sought to acquire undervalued businesses with a primary focus on mature technology, life sciences, industrial, and certain financial services segments, and pursue opportunities for value creation that leverage Acacia’s significant capital resources …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Tuesday, November 02, 2021

Comtech (CMTL)
Acacia Research Offers to Buy Comtech for $30/Share

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Acquisition Offer. Yesterday, Acacia Research (NASDAQ:ACTG) made an unsolicited and nonbinding offer to acquire Comtech for $790 million in cash, or $30 per share. The offer price is a 39% premium to Comtech’s closing share price on Friday. CMTL shares jumped 26% to close at $27.20 on the news. Comtech’s Board is evaluating the proposal in consultation with independent advisors.


Who Is Acacia? Historically, Acacia’s legacy business was investing in, licensing, and enforcing patented technologies.  More recently, the Company has sought to acquire undervalued businesses with a primary focus on mature technology, life sciences, industrial, and certain financial services segments, and pursue opportunities for value creation that leverage Acacia’s significant capital resources …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Monday, November 01, 2021

Voyager Digital (VYGVF)(VOYG:CA)
Fiscal 2021 4Q and Full Year Results

Voyager Digital Ltd through its subsidiary, operates as a crypto asset broker that provides retail and institutional investors with a turnkey solution to trade crypto assets. The company offers investors execution, data, wallet and custody services through its institutional-grade open architecture platform.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

4Q21 Results. Voyager reported $109 million of revenue for the fiscal fourth quarter ended June 30th and $175.1 million for the fiscal year. We had projected revenue of $105 million and $171 million, respectively. Adjusted EBITDA was $21.2 million and $62.7 million, respectively. Voyager reported net income of $30.0 million for the fourth quarter and a net loss for the year of $51.5 million, or $0.39 per share.


Metrics.  AUM of $6 billion and verified users of 2.4 million are both up from the October 6th release on preliminary 1Q22 results, of $5 billion and $2.15 million, illustrating the rapid growth potential of the Company, in our view. Fiscal year-end cash was $193.9 million and adjusted working capital was $207 million …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Comtech Confirms Receipt of Unsolicited Proposal

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Nov. 1, 2021– 
November 1, 2021— 
Comtech Telecommunications Corp. (NASDAQ: CMTL) today confirmed receipt of an unsolicited, non-binding proposal from 
Acacia Research Corporation (NASDAQ: ACTG).

Comtech’s Board of Directors is evaluating the proposal in consultation with independent advisors. The Board will determine the course of action that it believes is in the best interests of the Company and its stockholders. No stockholder action is required at this time.

Goldman Sachs is serving as exclusive financial advisor to 
Comtech and 
Proskauer Rose and 
Sidley Austin are serving as legal advisors.

About Comtech

Comtech Telecommunications Corp. is a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies to commercial and government customers around the world. Headquartered in 
Melville, New York and with a passion for customer success, 
Comtech designs, produces and markets advanced and secure wireless solutions. For more information, please visit www.comtechtel.com.

Forward-Looking Statements

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties, including about our business trajectory, future revenue and sales, acquisition strategy, and growth. Actual results could differ materially from such forward-looking information. Risks and uncertainties that could impact these forward-looking statements include: the possibility that the expected synergies and benefits from recent acquisitions will not be fully realized, or will not be realized within the anticipated time periods; the risk that the acquired businesses will not be integrated with the Company successfully; the possibility of disruption from recent acquisitions, making it more difficult to maintain business and operational relationships or retain key personnel; the risk that the Company will be unsuccessful in implementing a tactical shift in its Government Solutions segment away from bidding on large commodity service contracts and toward pursuing contracts for its niche products with higher margins; the nature and timing of receipt of, and the Company’s performance on, new or existing orders that can cause significant fluctuations in net sales and operating results; the timing and funding of government contracts; adjustments to gross profits on long-term contracts; risks associated with international sales; rapid technological change; evolving industry standards; new product announcements and enhancements; changing customer demands and or procurement strategies; changes in prevailing economic and political conditions; changes in the price of oil in global markets; changes in foreign currency exchange rates; risks associated with the Company’s legal proceedings, customer claims for indemnification, and other similar matters; risks associated with the Company’s obligations under its Credit Facility; risks associated with the Company’s large contracts; risks associated with the COVID-19 pandemic and related supply chain disruptions; and other factors described in this and the Company’s other filings with the 
Securities and Exchange Commission. We assume no obligation and do not intend to update these forward-looking statements or to conform these statements to actual results or to changes in our expectations.

Additional Information and Where to Find It

In connection with the Company’s Fiscal 2021 Annual Meeting of Stockholders (the “2021 Annual Meeting”), the Company plans to file with the 
Securities and Exchange Commission (“SEC”) and mail to the Company’s stockholders a definitive proxy statement, an accompanying BLUE proxy card and other relevant documents. The Company filed a preliminary proxy statement with the 
SEC on 
October 29, 2021. BEFORE MAKING ANY VOTING DECISION, THE COMPANY’S STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT IN ITS ENTIRETY WHEN IT BECOMES AVAILABLE, THE ACCOMPANYING BLUE PROXY CARD AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE COMPANY’S 2021 ANNUAL MEETING OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY’S 2021 ANNUAL MEETING AND THE PARTIES RELATED THERETO. The Company’s stockholders will be able to obtain a free copy of documents filed with the 
SEC at the SEC’s website at https://www.sec.gov or the Company’s website at https://www.comtechtel.com.

Participants in the Solicitation

The Company, its directors, and certain of its executive officers are, and certain other members of management and employees of the Company may be deemed, “participants” in the solicitation of proxies from stockholders in connection with the matters to be considered at the 2021 Annual Meeting. Information regarding the direct and indirect interests, by security holdings or otherwise, in the Company of the persons who are or may be, under the rules of the 
SEC, considered participants in the solicitation of the stockholders of the Company in connection with the Company’s 2021 Annual Meeting will be set forth in the Company’s proxy statement and other relevant documents to be filed with the 
SEC. You can find information about the Company’s executive officers and directors in the Company’s Annual Report on Form 10-K for the fiscal year ended 
July 31, 2021, the Company’s and such persons’ other filings with the 
SEC and in the Company’s definitive proxy statement in connection with the Company’s 2021 Annual Meeting when filed with the 
SEC.

Media Contact
Kekst CNC
Nicholas.Capuano@kekstcnc.com
(212) 521-4800

Investor Contact
Comtech Investor Relations
Investors@comtech.com
(631) 962-7005

Source: 
Comtech Telecommunications Corp.

	Image Credit: Laura Bang! (Flickr)

What is the Metaverse?

 

Two Media and Information Experts Explain

The metaverse is a network of always-on virtual environments in which many people can interact with one another and digital objects while operating virtual representations – or avatars – of themselves. Think of a combination of immersive virtual reality, a massively multiplayer online role-playing game and the web.

The metaverse is a concept from science fiction that many people in the technology industry envision as the successor to today’s internet. It’s only a vision at this point, but technology companies like Facebook are aiming to make it the setting for many online activities, including work, play, studying and shopping. Facebook is so sold on the concept that it is renaming itself Meta to highlight its push to dominate the metaverse.

 

This article was republished with permission from The Conversation, a news site dedicated to sharing ideas from academic experts. It was written by and represents the research-based opinions of Rabindra Ratan, Associate Professor of Media and Information, Michigan State University and Yiming Lei, Doctoral student in Media and Information, Michigan State University.

 

Metaverse is a portmanteau of meta, meaning transcendent, and verse, from universe. Sci-fi novelist Neal Stephenson coined the term in his 1992 novel “Snow Crash” to describe the virtual world in which the protagonist, Hiro Protagonist, socializes, shops and vanquishes real-world enemies through his avatar. The concept predates “Snow Crash” and was popularized as “cyberspace” in William Gibson’s groundbreaking 1984 novel “Neuromancer.”

There are three key aspects of the metaverse: presence, interoperability and standardization.

Presence is the feeling of actually being in a virtual space, with virtual others. Decades of research have shown that this sense of embodiment improves the quality of online interactions. This sense of presence is achieved through virtual reality technologies such as head-mounted displays.

Interoperability means being able to seamlessly travel between virtual spaces with the same virtual assets, such as avatars and digital items. ReadyPlayerMe allows people to create an avatar that they can use in hundreds of different virtual worlds, including in Zoom meetings through apps like Animaze. Meanwhile, blockchain technologies such as cryptocurrencies and nonfungible tokens facilitate the transfer of digital goods across virtual borders.

Standardization is what enables interoperability of platforms and services across the metaverse. As with all mass-media technologies – from the printing press to texting – common technological standards are essential for widespread adoption. International organizations such as the Open Metaverse Interoperability Group define these standards.

 

Why the Metaverse
Matters

If the metaverse does become the successor to the internet, who builds it, and how, is extremely important to the future of the economy and society as a whole. Facebook is aiming to play a leading role in shaping the metaverse, in part by investing heavily in virtual reality. Facebook CEO Mark Zuckerberg explained in an interview his view that the metaverse spans nonimmersive platforms like today’s social media as well as immersive 3D media technologies such as virtual reality, and that it will be for work as well as play.

 

Hollywood has embraced the metaverse in movies like ‘Ready Player One.’

The metaverse might one day resemble the flashy fictional Oasis of Ernest Cline’s “Ready Player One,” but until then you can turn to games like Fortnite and Roblox, virtual reality social media platforms like VRChat and AltspaceVR, and virtual work environments like Immersed for a taste of the immersive and connected metaverse experience. As these siloed spaces converge and become increasingly interoperable, watch for a truly singular metaverse to emerge.

 

Suggested Content:

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SPACtrac Report on Bowlero and ISOS

 

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Comtech Confirms Receipt of Unsolicited Proposal

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Nov. 1, 2021– 
November 1, 2021— 
Comtech Telecommunications Corp. (NASDAQ: CMTL) today confirmed receipt of an unsolicited, non-binding proposal from 
Acacia Research Corporation (NASDAQ: ACTG).

Comtech’s Board of Directors is evaluating the proposal in consultation with independent advisors. The Board will determine the course of action that it believes is in the best interests of the Company and its stockholders. No stockholder action is required at this time.

Goldman Sachs is serving as exclusive financial advisor to 
Comtech and 
Proskauer Rose and 
Sidley Austin are serving as legal advisors.

About Comtech

Comtech Telecommunications Corp. is a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies to commercial and government customers around the world. Headquartered in 
Melville, New York and with a passion for customer success, 
Comtech designs, produces and markets advanced and secure wireless solutions. For more information, please visit www.comtechtel.com.

Forward-Looking Statements

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties, including about our business trajectory, future revenue and sales, acquisition strategy, and growth. Actual results could differ materially from such forward-looking information. Risks and uncertainties that could impact these forward-looking statements include: the possibility that the expected synergies and benefits from recent acquisitions will not be fully realized, or will not be realized within the anticipated time periods; the risk that the acquired businesses will not be integrated with the Company successfully; the possibility of disruption from recent acquisitions, making it more difficult to maintain business and operational relationships or retain key personnel; the risk that the Company will be unsuccessful in implementing a tactical shift in its Government Solutions segment away from bidding on large commodity service contracts and toward pursuing contracts for its niche products with higher margins; the nature and timing of receipt of, and the Company’s performance on, new or existing orders that can cause significant fluctuations in net sales and operating results; the timing and funding of government contracts; adjustments to gross profits on long-term contracts; risks associated with international sales; rapid technological change; evolving industry standards; new product announcements and enhancements; changing customer demands and or procurement strategies; changes in prevailing economic and political conditions; changes in the price of oil in global markets; changes in foreign currency exchange rates; risks associated with the Company’s legal proceedings, customer claims for indemnification, and other similar matters; risks associated with the Company’s obligations under its Credit Facility; risks associated with the Company’s large contracts; risks associated with the COVID-19 pandemic and related supply chain disruptions; and other factors described in this and the Company’s other filings with the 
Securities and Exchange Commission. We assume no obligation and do not intend to update these forward-looking statements or to conform these statements to actual results or to changes in our expectations.

Additional Information and Where to Find It

In connection with the Company’s Fiscal 2021 Annual Meeting of Stockholders (the “2021 Annual Meeting”), the Company plans to file with the 
Securities and Exchange Commission (“SEC”) and mail to the Company’s stockholders a definitive proxy statement, an accompanying BLUE proxy card and other relevant documents. The Company filed a preliminary proxy statement with the 
SEC on 
October 29, 2021. BEFORE MAKING ANY VOTING DECISION, THE COMPANY’S STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT IN ITS ENTIRETY WHEN IT BECOMES AVAILABLE, THE ACCOMPANYING BLUE PROXY CARD AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE COMPANY’S 2021 ANNUAL MEETING OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY’S 2021 ANNUAL MEETING AND THE PARTIES RELATED THERETO. The Company’s stockholders will be able to obtain a free copy of documents filed with the 
SEC at the SEC’s website at https://www.sec.gov or the Company’s website at https://www.comtechtel.com.

Participants in the Solicitation

The Company, its directors, and certain of its executive officers are, and certain other members of management and employees of the Company may be deemed, “participants” in the solicitation of proxies from stockholders in connection with the matters to be considered at the 2021 Annual Meeting. Information regarding the direct and indirect interests, by security holdings or otherwise, in the Company of the persons who are or may be, under the rules of the 
SEC, considered participants in the solicitation of the stockholders of the Company in connection with the Company’s 2021 Annual Meeting will be set forth in the Company’s proxy statement and other relevant documents to be filed with the 
SEC. You can find information about the Company’s executive officers and directors in the Company’s Annual Report on Form 10-K for the fiscal year ended 
July 31, 2021, the Company’s and such persons’ other filings with the 
SEC and in the Company’s definitive proxy statement in connection with the Company’s 2021 Annual Meeting when filed with the 
SEC.

Media Contact
Kekst CNC
Nicholas.Capuano@kekstcnc.com
(212) 521-4800

Investor Contact
Comtech Investor Relations
Investors@comtech.com
(631) 962-7005

Source: 
Comtech Telecommunications Corp.

Friday, October 29, 2021

Voyager Digital (VYGVF)(VOYG:CA)
Strategic Investment from Alameda Research

Voyager Digital Ltd through its subsidiary, operates as a crypto asset broker that provides retail and institutional investors with a turnkey solution to trade crypto assets. The company offers investors execution, data, wallet and custody services through its institutional-grade open architecture platform.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Strategic Alliance. Yesterday, Voyager announced a strategic alliance with Alameda Research, one of the largest crypto market makers in the world. Alameda purchased $75 million of VGYVF common shares in a private placement of about 7.7 million shares. The additional investment will enable Voyager to continue to grow its business, in our view.


Why Important? Outside of the additional capital, the Alameda investment is a coup for Voyager, in our view.  Alameda was founded by Sam Bankman-Fried, the crypto wunderkind, with a net worth estimated at north of $22 billion. Immediate opportunity exists on the order flow and asset management front, with longer term potential in such markets as NFTs and crypto derivatives. Alameda trades over …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.