DLH Holdings (DLHC) CFO Kathryn JohnBull and CEO Zachary Parker at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 2021. Following the formal presentation, Noble Capital Markets Senior Research Analyst Joe Gomes joins Kathryn and Zachary to moderate a Q&A session. NobleCon 17 Complete Rebroadcast

Join Information Services Group (III) CFO David Berger & CEO Michael Conners at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 19&20, 2021. Following a formal presentation, a seasoned Wall Street research analyst will join David and Michael to moderate a LIVE Q&A session. If you want to be added to the roster of presenters… or if you would like to join the virtual audience of investors, at no cost, go to nobleconference.com. NobleCon 17 Complete Presenting Company Schedule

Tuesday, January 12, 2021

Information Services (III)
Raising PT As Share Price Continues Upward Trajectory

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.

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

Increasing PT. We are raising our 12-month price target on ISG shares. ISG shares have shown strong momentum since the beginning of November, nearly doubling in price. At our increased PT, ISG shares would trade at an EV/S multiple of 1.2x our projected 2021 revenues and 10.8x on an EV/EBITDA multiple on our 2021 EBITDA projection. These multiples remain at a discount to the peer group which trades at an EV/S multiple of 2.0x and an EV/EBITDA multiple of 14.2x based on consensus 2021 estimates.


WFH Trends to Provide Boost.  The pandemic will end at some point, hopefully soon, but we anticipate a number of changes in how we work to stick, to varying degrees. We believe a number of these trends will favor the services offered by Information Services, which will bode well for the Company’s future operating results. Digital is the future and the best way to improve efficiency, reach customers …

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. 

Join TAAL Distributed Information Technologies (TAALF) CEO Chris Naprawa at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 19&20, 2021. Following a formal presentation, a seasoned Wall Street research analyst will join Chris to moderate a LIVE Q&A session. If you want to be added to the roster of presenters… or if you would like to join the virtual audience of investors, at no cost, go to nobleconference.com. NobleCon 17 Complete Presenting Company Schedule

Friday, January 08, 2021

One Stop Systems Inc. (OSS)
Another Contract Win; Raising Price Target

One Stop Systems Inc is US-based company which is principally engaged in designing, manufacturing, marketing high-end systems for high performance computing (HPC) applications. The company offers custom servers, compute accelerators, solid-state storage arrays and system expansion systems. The product line of the company includes GPU Appliances, GPU Expansion, GPUs and co-processors, Flash storage arrays, Flash storage expansion, Servers, Disk Arrays, Desktop computing appliances, accessories and parts. The company delivers high-end technology to customers through the sale of equipment and software for use on their premises or through remote cloud access to secure data centres housing technology.

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

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

New Contract. One Stop Systems has expanded its engagement at a major military prime contractor with its fourth major program win with this customer. Named “Orange Gear,” the most recent award involves building an AI system consisting of a cluster of three OSS custom GPU-accelerated rugged servers, designed to meet the unique power and ruggedization requirements of an airborne application. The latest award continues to build on OSS’s “data center in the sky” strategy, in our view. Although, OSS did not provide any financial details of the latest contract, we do expect these four awards to be significant revenue contributors going forward.


Other Programs.  OSS’s other programs with this customer include ground-based missile defense radar simulation, data storage units for radar data in flight, and a single server of AI “data center in the sky.” These awards provide validation of OSS’s technology for mission critical U.S. Navy applications, in our view, and could be a springboard to get a seat at the table for other military programs …

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. 

Tuesday, January 05, 2021

Vectrus (VEC)
A Busy Holiday Period for Vectrus: Another Acquisition

Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.

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

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

HHB Systems. Monday morning, Vectrus announced its second acquisition in a week, this time acquiring HHB Systems. HHB Systems is a leading provider of high-end solutions for facilities management, logistics, engineering, enterprise operations, and asset management solutions supporting Intelligence Community (IC) projects. Additionally, HHB provides information technology and cybersecurity solutions to select clients. Financial details of the acquisition were not released.


HHB Benefits.  HHB advances Vectrus’ ability to deliver innovative, integrated solutions and further differentiates the company as a leader in the converged infrastructure market, in our view. According to Vectrus, the Zenetex and HHB teams work together in the IC market today and expand the opportunities under Vectrus to reach existing DoD and IC clients …

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. 

Join MIND Technology (MIND) CEO/CFO Robert Capps & COO Dennis Morris at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 19&20, 2021. Following a formal presentation, a seasoned Wall Street research analyst will join Robert and Dennis to moderate a LIVE Q&A session. If you want to be added to the roster of presenters… or if you would like to join the virtual audience of investors, at no cost, go to nobleconference.com. NobleCon 17 Complete Presenting Company Schedule

Join One Stop Systems (OSS) CEO David Raun & CFO John Morrison at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 19&20, 2021. Following a formal presentation, a seasoned Wall Street research analyst will join David and John to moderate a LIVE Q&A session. If you want to be added to the roster of presenters… or if you would like to join the virtual audience of investors, at no cost, go to nobleconference.com. NobleCon 17 Complete Presenting Company Schedule

Join Rekor Systems (REKR) CEO Robert Berman & CFO Eyal Hen at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 19&20, 2021. Following a formal presentation, a seasoned Wall Street research analyst will join Robert and Eyal to moderate a LIVE Q&A session. If you want to be added to the roster of presenters… or if you would like to join the virtual audience of investors, at no cost, go to nobleconference.com. NobleCon 17 Complete Presenting Company Schedule

Join Voyager Digital (VYGVF)(VYGR:CA) CEO Steve Ehrlich at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 19&20, 2021. Following a formal presentation, a seasoned Wall Street research analyst will join Steve to moderate a LIVE Q&A session. If you want to be added to the roster of presenters… or if you would like to join the virtual audience of investors, at no cost, go to nobleconference.com. NobleCon 17 Complete Presenting Company Schedule

Thursday, December 10, 2020

Comtech Telecommunications Corporation (CMTL)
1Q Results Beat Expectations But COVID Impacts Continue

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.

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

Earnings Beat. Comtech revenue and adjusted EBITDA came in above management’s and our expectations. Comtech posted 1Q21 revenue of $135.2, compared to $170.3 million in the year ago period. Adjusted EBITDA came in at $14.3 million versus $20.6 million last year. GAAP EPS was a loss of $3.39, versus EPS of $0.26 last year. Adjusted EPS was $0.15 compared to $0.32 last year. We were at $125 million of revenue and adjusted EBITDA of $7.2 million.


Ongoing Contract Momentum.  As we have highlighted in past reports, contract momentum continues to build, in spite of COVID. Examples abound with particular strength in the NG911 business. Large opportunities remain, including some LEO and MEO related opportunities which could result in substantial, multi-year contracts if won …

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. 

Wednesday, November 25, 2020

Comtech Telecommunications Corporation (CMTL)
Another Major NG911 Win

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.

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

NG 911 Win. Comtech has been awarded a statewide contract valued up to $175.1 million to design, deploy, and operate Next Generation 911 services for the Commonwealth of Pennsylvania. This latest win adds to Comtech’s impressive list of NG911 wins, which include Massachusetts, South Carolina, Northern Illinois, and Australia. The Company continues to seek out additional NG911 opportunities and we believe at least one more major contract could be awarded this year.


Contract Details.  Pennsylvania initially funded the contract for $137.4 million, of which Comtech expects to record $111.6 million as a booking during its fiscal 2021 second quarter. The term of the contract is for seven years with a potential three-year extension. We anticipate revenues to begin to flow to Comtech in the fourth quarter of fiscal 2021 and believe the contract could add …

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. 

 

Mobile Artificial Intelligence is an Ever Expanding Technology

 

A child runs in front of you unexpectedly while you drive down your street. Your eyes see them and instantly send a signal to your brain. Your intelligent brain draws on a lifetime of related scenarios and almost instantly sends a signal down the neural pathways to your leg instructing it to hit the brake while perhaps simultaneously sending directions to your arms to alter your direction. All of these decisions were made onboard your vehicle with the most powerful computing tool you own, your brain.

Artificial Intelligence (AI)

Control is quickly being taken out of human hands (brains). Whether it be a driverless car, fighter jet, or any number of on-the-move AI applications.  Inventive ways of building onboard computing are working to fill this growing need. Artificial intelligence is nothing new, but it’s now being applied where the closer the “decision-maker” is to the situation, the faster the reaction time. In order to best suit all the new demands of AI, decision making power will very often need to be closer to the affected equipment. After all, your brain didn’t send a signal to the nearest 5G tower; that sent a signal to a server where the computing was done and then sent back to the 5G tower and to your leg to stop your car. All thinking and signaling was done within the space of a few feet. Onboard AI or edge computing strives to accomplish the same.

Edge Computing

Edge technology and its needed ruggedness has become necessary for domestic aircraft, military functions, and esports events to name a few applications. There is an expanding need. Edge is defined as small, lightweight, dense mainframe computing for a non-climate controlled, unfiltered, not bolted to the floor environment.  The market for edge is now estimated to be $18-$23 billion, and demand is growing.

One company that has carved out a place in edge computing is One Stop Systems (OSS). OSS designs and manufactures ultra-dense high-performance computing systems for learning, oil and gas exploration, trading, media and entertainment, defense, and traditional HPC applications. Equity Analyst Joe Gomes from Noble Capital Markets covers OSS. We spoke with Mr. Gomes yesterday to garner a bit more understanding about this technology, its potential, and specifically which areas of edge computing One Stop Systems specializes in.

 

Channelchek – How big is edge computing now, and what are the forecasts for its growth over the next few years?

 

Joe Gomes: Total Edge Computing market is about $18B, but OSS only currently plays in about $3 billion of this market. Existing space provides plenty of upside growth opportunities, and expansion into other parts of the edge computing market provides even larger growth opportunities. The market is growing by an estimated 26% from 2019-2027

 

Channelchek: Where is the biggest growth in edge computing, and specifically for OSS expected to come from?

 

Joe Gomes: Biggest growth will come from “AI on the fly” applications. AI on the fly provides actionable intelligence in real-time, on-site at the point of acquisition. We expect to see strong demand for such OSS products as flash array storage, GPU compute accelerators, and PCI express Gen 4 expansion product

 

Channelchek: Who are some of One Stop Systems’ larger customers or potential customers?

 

Joe Gomes: Some of the company’s larger clients historically have been Disguise, a media, and entertainment company that provides products for large in-person events (such as the Superbowl and concerts). Obviously, this is a difficult business currently with COVID. Raytheon, where OSS supplies flash storage arrays for military radar applications and has since worked its way onto additional military programs. Other key customers include Lyft and National Instruments

 

Channelchek: Working with Noble Capital Markets, Channelchek will be hosting a live presentation by OSS on November 19, discussing the company and fielding questions from the virtual audience. Is there anything specific that virtual attendees should listen for?

 

Joe Gomes: Well, the best advice I can give as a research analyst covering OSS is, if you have an interest in where this one aspect of the artificial intelligence world is trending that you should spend 40 minutes with us and maybe even ask questions this coming Thursday, Nov. 19 at 11 am EST.

 

Channelchek: Thank you, Joe.

 

Technologies that are changing the world often are developed where they grow and become providers to larger companies, who license that technology or acquired so larger, less creatively nimble companies benefit from synergies and patented technology. We encourage anyone with interest in mobile artificial intelligence and edge technology to join us. Details for virtual attendance are available below.

 

 

One Stop Systems (OSS) Thursday November 19 11:00am EST   David Raun – CEO & John Morrison – CFO Register Now