Category: Tech

Thursday, January 30, 2020

Comtech Telecommunications Corp. (CMTL)

Gilat Satellite: A Transformational Acquisition

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.

Gilat Acquisition. Gilat Acquisition. Yesterday, Comtech announced the acquisition of Gilat Satellite Networks, which we believe is a transformational acquisition for Comtech. On a pro forma combined basis, Comtech would have revenue of $926.1 million and adjusted EBITDA of $130.2 million.

The Deal. Comtech is paying $10.25/sh, with 70% in cash and 30% in stock. Total EV is $532.5 million resulting in an EV/TTM sales of 2.1x and…

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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. 

Thursday, January 30, 2020

Comtech Telecommunications Corp. (CMTL)

Gilat Satellite: A Transformational Acquisition

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.

Gilat Acquisition. Gilat Acquisition. Yesterday, Comtech announced the acquisition of Gilat Satellite Networks, which we believe is a transformational acquisition for Comtech. On a pro forma combined basis, Comtech would have revenue of $926.1 million and adjusted EBITDA of $130.2 million.

The Deal. Comtech is paying $10.25/sh, with 70% in cash and 30% in stock. Total EV is $532.5 million resulting in an EV/TTM sales of 2.1x and…

Get the full report on Channelchek desktop.

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. 

Thursday, January 23, 2020

One Stop Systems Inc. (OSS)

Preliminary 4Q and FY2019 Revenues Top Expectations

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.

Preliminary 2019 Revenues. OSS reported preliminary 2019 revenue of $58.3 million, above the high end of management’s previous $58 million guidance and above our $56.9 million projection. This is a 57% increase over 2018 revenue. Fourth quarter 2019 revenue is projected to be a record $18.4 million. Full year results are expected to be released in March. We will update our models then.

Growth Reflects Multiple Factors. The 2019 record growth reflects a combination of new design win revenue, acquisition related revenue, and ongoing growth at major customers. While acquisitions are always a wild card, we expect to see ongoing growth from major customers and…

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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. 

Thursday, January 23, 2020

One Stop Systems Inc. (OSS)

Preliminary 4Q and FY2019 Revenues Top Expectations

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.

Preliminary 2019 Revenues. OSS reported preliminary 2019 revenue of $58.3 million, above the high end of management’s previous $58 million guidance and above our $56.9 million projection. This is a 57% increase over 2018 revenue. Fourth quarter 2019 revenue is projected to be a record $18.4 million. Full year results are expected to be released in March. We will update our models then.

Growth Reflects Multiple Factors. The 2019 record growth reflects a combination of new design win revenue, acquisition related revenue, and ongoing growth at major customers. While acquisitions are always a wild card, we expect to see ongoing growth from major customers and…

Get the full report on Channelchek desktop.

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. 

Wednesday, December 18, 2019

One Stop Systems Inc. (OSS)

Price Decline Presents Favorable Risk/Reward Opportunity

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.

Risk/Reward Opportunity Favorable. Trading at $1.72, down from $3.07 a little over two months ago, OSS shares present a favorable risk/reward opportunity, in our view. At the current price, OSS shares are now trading at less than 0.5x our 2019 projected revenue and less than 10x our projected EBITDA for the year.

Insider Buying a Positive. Through a series of purchases this month, Director David Raun increased his overall OSS holdings by 49% to 40,410 shares. The shares were acquired at prices ranging from $1.70 to $1.86 per share. Notably, Mr. Raun is the former CEO of PLX Technology, which was a leading manufacturer of PCI Express switches and…

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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, November 26, 2019

Information Services Group Inc. (III)

RPA Market Continues to Attract Investors

Information Services Group (ISG) (III) is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning.

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

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

Automation Anywhere Raise Highlights Value of RPA Business.  Last week Automation Anywhere announced it had raised $290 million at a $6.8 billion valuation, which is up nearly 3-fold from the $2.6 billion valuations used in last November’s rise. The jump in valuation highlights the strong investor interest in the RPA space.

Microsoft Validation.  Microsoft recently announced that it was entering the robotic process automation business, providing validation of the marketplace, in our opinion. Notably, RPA is the fastest-growing segment in…

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This Company Sponored 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 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. 

Thursday, November 14, 2019

Dyadic International Inc. (DYAI)

Q3 2019: Continuing Expansion of C1 Technology Applications

Dyadic International, Inc. is a global biotechnology company which is developing what it believes will be a potentially significant biopharmaceutical gene expression platform based on the industrially proven hyper productive engineered fungus Thermothelomyces heterothallica (formerly Myceliophthora thermophila), named C1.
The C1 microorganism, which enables the development and large scale manufacture of low cost proteins, has the potential to be further developed into a safe and efficient expression system that may help speed up the development, lower production costs and improve the performance of biologic vaccines and drugs at flexible commercial scales. Dyadic is using the C1 technology and other technologies to conduct research, development and commercial activities for the development and manufacturing of human and animal vaccines and drugs, such as virus like particles (VLPs) and antigens, monoclonal antibodies, Fab antibody fragments, Fc-Fusion proteins, biosimilars and/or biobetters, and other therapeutic proteins. Dyadic pursues research and development collaborations, licensing arrangements and other commercial opportunities with its partners and collaborators to leverage the value and benefits of these technologies in development and manufacture of biopharmaceuticals. In particular, as the aging population grows in developed and undeveloped countries, Dyadic believes the C1 technology may help bring biologic vaccines, drugs and other biologic products to market faster, in greater volumes, at lower cost, and with new properties to drug developers and manufacturers, and improve access and cost to patients and the healthcare system, but most importantly save lives.

Ahu Demir, Ph.D., Biotechnology Research Analyst, Noble Capital Markets, Inc.

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

• Multiple collaborations progressing towards validation of C1 technology.  Dyadic continues to follow its business model by establishing research collaboration with large pharmaceuticals, institutions and biotechnology firms to validate C1 technology in biologics for human and animal health, in addition to the company’s own in-house efforts. Management continues to maintain costs in check with low cash-burn while increasing the probability of success of C1 technology’s potential in the biologics market. The company recently added animal health segment via partnerships to its current portfolio of human biotherapeutics including vaccines, biosimilars, metabolites, and viral vectors.
  
• Third Quarter Earnings Update. On November 13,  the company reported $0.46 million in revenues, $0.9 million in R&D expenses and $1.1 million in G&A expenses. Net loss was $1.7 million, or ($0.06) per share. The reported numbers are in-line with our estimates. Therefore, we are maintaining our…
  
  

  
  

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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. 

Cryptocurrencies May Drive Innovation in Global Payments Systems

(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)

While Bitcoin was released in 2009 and is considered by many to be the first decentralized cryptocurrency, others have followed including Tether, Ethereum, Litecoin and others.  Mass-market adoption has been hindered, in part, by their volatility which has made them poor stores of value and mediums of exchange.  Further, cryptocurrencies have been met with skepticism by various governmental bodies that see risk to existing monetary and central banking institutions.  Mark Zuckerberg, CEO of Facebook, recently testified in front of the United States House of Representatives Committee on Financial Services to discuss Libra, a blockchain digital currency proposed by Facebook and the Libra Association, an independent, not-for-profit membership organization headquartered in Geneva, Switzerland, of which Facebook is a founding member.  Reaction to his testimony has been mixed.  Do the risks of global cryptocurrencies outweigh the benefits?  While concepts are evolving, we look at the bull and bear arguments related to cryptocurrency.

Monday, November 11, 2019

Information Services Group Inc. (III)

Additional 3Q19 Comments; Updated Projections

Information Services Group (ISG) (III) is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning.

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

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

• Continue to Develop ISG Platform.  The ISG Platform is a suite of more profitable products and services and should help drive recurring revenues to $100 million by the end of 2021. In the third quarter, III added 6,000 contract documents and $4 billion of contract value under management just in its GovernX product.
  
• Client Base Continues to Expand.  Through the first nine months of 2019, Information Services has served 614 clients, including more than…
  
  

  
  

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This Company Sponored 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 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. 

Friday, November 8, 2019

One Stop Systems Inc. (OSS)

Strong 3Q19 Sets Stage for Excellent Full Year 2019

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 full report for price target, fundamental analysis and rating.

• Strong 3Q19.  One Stop Systems reported record revenue of $14.9 million in the third quarter, up 55% y-o-y. GAAP EPS came in at $0.03, versus $0.09 in the year ago period, while non-GAAP adjusted EPS was $0.05 compared to $0.11. Excluding a unique tax benefit in 3Q18, GAAP and non-GAAP EPS actually improved by $0.04 year-over-year. We had forecast $15 million of revenue and GAAP EPS of $0.04.
• Acquisitions the Driver. OSS’s Bressner and CDI units drove the quarter’s performance as the legacy OSS business revenue was down 2% reflecting the lumpiness of the military contracts. Bressner set a new quarterly revenue record at…
  
  

  
  

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

*Analyst
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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Thrusday, November 7, 2019

Information Services Group Inc. (III)

Mixed Third Quarter Results, But Record Adjusted EBITDA and Strong Cash Generation

Information Services Group (ISG) (III) is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning.

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

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

• 3Q19 Results. ISG reported third quarter revenue of $68.1 million, adjusted EPS of $0.09, and record adjusted EBITDA of $10.3 million. We had forecast revenue of $72 million, adjusted EPS of $0.08, and adjusted EBITDA of $10.2 million. Consensus was $71.1 million of revenue and EPS of $0.07.
  
• Highlights. Americas region has its strongest quarterly revenue growth since 2017, highest quarterly adjusted EBITDA ever, and…
  
  

  
  

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

*Analyst
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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Going to the Movies? A Theater or Stream?

(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)

In the 1930s, over half of the US population were weekly movie theater attendees. Today, the average American goes to the movies just four or five times a year.₍₁₎ While a large portion of the decline is due to a loss of novelty, changing demographics, and an explosion in entertainment alternatives, the rise of streaming services is having an impact on movie theaters. Can movie theaters survive the onslaught of streaming? 

Wednesday, September 25, 2019

Comtech (CMTL)

Does a Strong 2019 Bode Well for 2020? Raising Price Target to $40.

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for communications market for both domestic and international customers. Through the company’s legacy communications systems, Comtech provides satellite modems to international consumers and secure troposcatter systems to foreign governments and the US military. The TCS acquisition provides communications equipment and services to both commercial and governmental organizations.

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

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

• Excellent 4Q19 and FY19 Results.  Comtech reported 4Q19 revenue of $176.4 million, adjusted EBITDA of $28.3 million, GAAP EPS of $0.25 and non-GAAP EPS of $0.29. These results were above our and consensus expectations. Full year revenue totaled $671.8 million, adjusted EBITDA totaled $93.5 million, GAAP EPS was $1.03, and non-GAAP EPS came in at $1.34.
• Business Environment Remain Favorable.   2019 results were driven by a favorable business environment, one that remains strong. Market demand for…
  

  
  
  

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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 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.