Category: Technology

Tech Stocks Stumble Despite Strong Earnings from Alphabet and Meta

Posted on by slightbourne@noblecapitalmarkets.com

Tech stocks have taken it on the chin over the past two days, with the Nasdaq tumbling nearly 3.5%, despite stellar earnings reports from two giants in the space. Alphabet and Meta both exceeded expectations with their latest quarterly results, yet saw their shares plunge amid broader concerns about economic conditions weighing on future growth.

Alphabet posted robust advertising revenues, with Google Search and YouTube continuing to hum along as profit drivers. However, its Google Cloud division came up shy of estimates, expanding at a slower pace as clients apparently pulled back on spending. This reignited worries about Alphabet’s ability to gain ground on the cloud leaders Amazon and Microsoft.

Meanwhile, Meta also topped analyst forecasts, led by better ad revenues at Facebook and Instagram. But in the earnings call, Meta CFO Susan Li warned that the conflict in the Middle East could impact advertising demand in the fourth quarter. This injected uncertainty into Meta’s outlook, leading the stock lower.

The sell-off in these tech titans reflects overall investor angst regarding the challenging macroeconomic environment. While both companies beat expectations for the just-completed quarter, lingering headwinds such as high inflation, rising interest rates, and global conflicts have markets on edge.

Details

This skittishness has erased the gains tech stocks had made earlier in the year after a dismal 2022. Meta and Alphabet remain in positive territory year-to-date, but have given back chunks of their rallies from earlier this year. Other tech firms like Amazon and Apple are also dealing with the fallout ahead of their upcoming earnings reports.

The market is taking a “sell first, ask questions later” approach with these stocks right now. Even as fundamentals remain relatively sound, any whiff of weakness or caution from management is being seized upon as a reason to sell. The slightest negative data point is exaggerated amid the unsettled backdrop.

Both Alphabet and Meta have been aggressively cutting costs after overindulging during the pandemic boom years. But investors are now laser-focused on the revenue outlook, rather than celebrating the expense discipline. If top-line growth decelerates materially, the bottom-line gains from cost reductions will be moot.

For now, the Nasdaq remains in a confirmed uptrend, so this could prove to be just a brief pullback before tech stocks regain their footing. Many firms in the sector remain highly profitable with solid balance sheets. But the risk is that slowing economic activity and consumer jitters will weigh on future earnings potential.

Tech investors may need to buckle up for more volatility ahead. The days of easy gains propelled by boundless growth and ultra-low interest rates appear to be over. Now tech companies face much more skeptical scrutiny of their business fundamentals. In an environment where growth is harder to come by, even stellar quarterly results may not be enough to pacify traders worried about what lies ahead.

PCTEL to be Acquired by Amphenol in $139.7 Million All-Cash Deal

Posted on by slightbourne@noblecapitalmarkets.com

PCTEL, a leading global provider of wireless technology solutions, announced last week that it has reached a definitive agreement to be acquired by Amphenol Corporation in an all-cash transaction valued at approximately $139.7 million.

Under the terms of the agreement, Amphenol will acquire all outstanding shares of PCTEL common stock for $7.00 per share. This offer price represents a premium of over 50% compared to PCTEL’s closing share price of $4.62 on October 13, 2023, the last full trading day before the deal was announced.

The acquisition will allow PCTEL to leverage Amphenol’s global presence, dedicated customer base, and scale to accelerate the growth of PCTEL’s business. Amphenol is one of the world’s largest providers of high-technology interconnect, sensor and antenna solutions.

PCTEL is seen as a clear innovation leader in wireless technology solutions, making it an excellent strategic fit within Amphenol’s portfolio. PCTEL’s capabilities in antennas and test and measurement will complement Amphenol’s strengths in interconnect and sensor technologies.

The deal has been approved by PCTEL’s Board of Directors and is expected to close either in Q4 2023 or early 2024, subject to shareholder approval and customary closing conditions. Once the acquisition is completed, PCTEL will no longer be a publicly traded company on the Nasdaq.

PCTEL provides purpose-built Industrial IoT devices, antenna systems, and test and measurement products to customers worldwide. The company has built trusted relationships through nearly 30 years of experience solving complex wireless challenges and helping organizations stay connected, transform and grow.

Take a moment to take a look at Comtech Telecommunications Corp., a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies.

Amphenol has a diversified presence across high-growth segments including automotive, broadband communications, commercial aerospace, industrial, information technology, military, mobile devices and mobile networks. Amphenol’s sustained financial strength and entrepreneurial culture will support taking PCTEL’s business to new heights.

The transaction follows a nearly year-long strategic review process overseen by PCTEL’s Board of Directors. In their announcement, PCTEL highlighted that Amphenol’s culture is well-aligned and will provide a valuable home for PCTEL’s global employees after the acquisition.

For investors, the all-cash deal provides certainty of value at an attractive premium to PCTEL’s recent trading prices. The $7.00 per share price is over 50% higher than the 30-day volume weighted average share price prior to the deal announcement.

PCTEL’s CEO David Neumann noted that the company’s team has done an excellent job growing the business and meeting strong customer demand globally, especially for high reliability applications. This established market position made PCTEL an appealing target for Amphenol.

The deal marks an exciting milestone for PCTEL, allowing the company to join forces with an industry leader in Amphenol. Investors can expect an accelerated growth trajectory as the combined companies leverage their technical strengths and customer relationships.

After 29 years as an independent public company, PCTEL is set to start an exciting new chapter as part of Amphenol. This transaction highlights the ongoing demand for antennas, sensors and other wireless connectivity technology solutions.

Nvidia and Chip Stocks Tumble Amid Escalating China-U.S. AI Chip Export Tensions

Posted on by slightbourne@noblecapitalmarkets.com

Shares of Nvidia and other semiconductor firms tumbled Tuesday morning after the U.S. announced stringent new curbs on exports of artificial intelligence chips to China. The restrictions spooked investors already on edge about the economic fallout from deteriorating U.S.-China relations.

Advanced AI chips like Nvidia’s flagship A100 and H100 models are now barred from shipment to China, even in downgraded versions permitted under prior rules. Nvidia stock plunged nearly 7% on the news, while chip stocks like Marvell, AMD and Intel sank 3-4%. The Philadelphia Semiconductor Index lost over 5%.

The export crackdown aims to hamper China’s progress in developing cutting-edge AI, which relies on massive computing power from state-of-the-art chips. U.S. officials warned China could use next-generation AI to threaten national security.

“We have specific concern with respect to how China could use semiconductor technologies to further its military modernization efforts,” said Alan Estevez, an under secretary at the Commerce Department.

But hampering China’s AI industry could substantially dent revenues for Nvidia, the dominant player in advanced AI chips. China is estimated to account for billions in annual sales.

While Nvidia said the financial impact is not immediate, it warned of reduced revenues over the long-term from tighter China controls. Investors are concerned these export curbs could be just the beginning if tensions continue to escalate between the global superpowers.

The escalating trade barriers also threaten to disrupt global semiconductor supply chains. Many chips contain components sourced from the U.S., Japan, Taiwan and other countries before final manufacturing and assembly occurs in China. The complex web of cross-border production could quickly seize up if trade restrictions proliferate.

Nvidia and its peers sank Tuesday amid fears of being caught in the crossfire of a technology cold war between the U.S. and China. Investors dumped chip stocks on worries that shrinking access to the massive Chinese market will severely depress earnings.

AI chips are essential to powering everything from data centers, autonomous vehicles, and smart devices to facial recognition, language processing, and machine learning. As AI spreads across the economy, demand for specialized semiconductors is surging.

But rivalries between the U.S. and China now threaten to put a ceiling on that growth. Both nations are aggressively competing to dominate AI research and set the global standards for integrating these transformative technologies. Access to the most powerful AI chips is crucial to these efforts.

By curbing China’s chip supply, the U.S. administration aims to safeguard America’s edge in AI development. But tech companies may pay the price through lost revenues if China restricts access to its own market in retaliation.

For the broader stock market already on edge about resurgent inflation, wars in Ukraine and the Middle East, and rising interest rates, the intensifying technology cold war represents yet another worrying threat to global economic growth. While a severe downturn may ultimately be avoided, the rising risk level underscores why investors are growing more anxious.

Comtech Telecommunications (CMTL) – A Transformational Year

Posted on by cpereira@noblefcm.com


Tuesday, October 17, 2023

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, Managing Director, Equity Research Analyst, Generalist , 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.

4Q23 Results. Revenue of $148.8 million was up 9.2% sequentially, well above the management’s 1%-4% projected sequential growth. Y-o-Y revenue was up 17.2%. We were at $140 million. Adjusted EBITDA totaled $18.9 million, versus $12.7 million in 4Q22. We were at $13.4 million. Comtech reported a net loss of $5.3 million, or a loss of $0.19 per share, compared to a net loss of $6.9 million, or $0.26 per share last year. Adjusted EPS was $0.29 versus $0.24. We had forecast a net loss of $8.2 million, or a loss of $0.29 per share, and adjusted EPS of $0.21.

Transformational Year. We believe FY23 was a transformational year for Comtech. The business structure has been simplified, synergies are becoming apparent, cost savings can be seen in the operating results, and major new contract awards provide a solid foundation for future growth.


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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. 

Release – ISG Women in Digital Award Winners Named for Asia Pacific and India

Posted on by aweinsoff@channelchek.com

Research News and Market Data on III

10/11/2023

Leaders with ANZ Group Holdings, Australia Post, Silverlake Axis, Tech Mahindra and VicRoads named winners in five award categories

STAMFORD, Conn.–(BUSINESS WIRE)– Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, today announced the winners of the first ISG Women in Digital Awards program for the Asia Pacific region, including India, recognizing women and their achievements in the digital world.

At a live, virtual award ceremony earlier today, leaders with ANZ Group Holdings, Australia Post, Silverlake Axis, Tech Mahindra and VicRoads were honored as winners in five categories, as selected by a panel of industry judges.

“In our inaugural year for Asia Pacific and India, the ISG Women in Digital Awards program received more than one hundred nominations of exceptional women who are changing the face of the digital economy in this region,” said Scott Bertsch, ISG partner and regional leader, ISG Asia Pacific, and executive sponsor of ISG Women in Digital in Asia Pacific. “All nominees, and each woman recognized with an award, are making unique and impactful contributions to advancing digital business in this part of the world, and we are delighted to celebrate their success.”

An independent panel of judges, comprised of Jenny Watson, senior director of technology for health insurance and business services, Bupa; Kaylene O’Brien, managing director, Capgemini Australia and New Zealand, and Namratha Dharshan, chief business leader, ISG Research, evaluated the nominations and selected the following winners:

  • Rising Star: for demonstrating exceptional and continuous growth, with increasing levels of leadership, responsibility and sphere of impact:

Gold Winner: Cassandra Goh, deputy CEO, Silverlake Axis

Silver Winner: Deepti Kakkar Wadhwa, associate director, Cognizant

Bronze Winner : Sindhura Guturu, Agile project manager LTIMindtree

  • Women’s Advocate: for playing an active role guiding women to succeed in the digital world:

Gold Winner: Grace Zielinski, director, technology operations, VicRoads

Silver Winner : Kavita Kapoor, chief financial officer, Quinnox

Bronze Winner : Kate Hickman, chief people officer, Infoxchange

Digital Innovator: for making a significant impact on an organization, business or client through creative use of digital solutions:

Gold Winner: Sweta Mehra, chief marketing officer, ANZ Group Holdings

Silver Winner: Keerthi Harikrishnan, domain expert, Health Care and Life Sciences, Innovation Labs, Persistent

Bronze Winner: Yashu Singh, senior product owner, Commonwealth Bank

Rock Star Leader: for leading a major transformation with significant business impact and demonstrating exceptional leadership skills:

Gold Winner: Dhanashree Bhat, chief delivery officer, Comms, Media and Technology, Tech Mahindra

Silver Winner: Madhu Gaur, senior vice president, customer success, Quinnox

Bronze Winner: Simmi Dhamija, chief operating officer (APMEA), Wipro

Sharbani Dhar, director of design and digital accessibility at Australia Post, was chosen by the judges as the Digital Titan of the Year for Asia Pacific and India from the entire pool of regional nominees, recognizing her as the most outstanding woman in digital in the region for 2023.

The awards program, launched in the Americas in 2022, was expanded for 2023 to the Europe, Middle East and Africa (EMEA) and Asia Pacific regions, including India. The global program received a total of 327 nominees, who are listed in an online ISG Women in Digital eBook. Awards for EMEA will be presented October 26, at 6 p.m., GMT. Awards for the Americas were presented on September 7.

“Women are breaking barriers and making lasting, positive changes in digital and technology leadership roles,” said Kimberly Tobias, ISG director and head of the ISG Women in Digital program. “We are honored to recognize the success of each person nominated. Congratulations to our 2023 winners.”

Created in 2018, the ISG Women in Digital community provides a platform to exchange practical advice and innovative ideas on diversity and advancement in the workplace. The community hosts a LinkedIn page, an ongoing ISG Digital Dish podcast series, and regular events for ISG employees and the greater IT and business services industry.

For more information about the ISG Women in Digital Awards, contact ISG.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 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 1,600 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.

Source: Information Services Group, Inc.

AMD Will Acquire AI Software Specialist Nod.ai Amid Mixed Tech IPO Environment

Posted on by slightbourne@noblecapitalmarkets.com

AMD announced Monday that it will acquire Nod.ai, an expert in optimized artificial intelligence (AI) software solutions. The deal aims to boost AMD’s capabilities in open-source AI development tools, compilers, and models tuned for AMD data center, PC, gaming and graphics chips.

The acquisition comes during a rocky period for initial public offerings in the technology sector. Chip designer Arm Holdings, which recently went public, has seen its shares drop below its IPO price as investors grow concerned over tech valuations and growth prospects in a turbulent market.

Nod.ai: Boosting AMD’s AI Software Expertise

San Jose-based Nod.ai has developed industry-leading software that speeds the deployment of AI workloads optimized for AMD hardware, including Epyc server CPUs, Radeon gaming graphics, and Instinct data center GPUs.

Nod.ai maintains and contributes to vital open-source AI repositories used by developers and engineers globally. It also works closely with hyperscale cloud providers, enterprises and startups to deploy robust AI solutions.

AMD gains both strategic technology and rare AI software expertise through Nod.ai’s highly experienced engineering team. Nod.ai’s compiler and automation capabilities reduce the complexity of optimizing and deploying high-performance AI models across AMD’s product stack.

Market Tailwinds for AI Innovation

The pickup in AI workload optimization comes at a time when machine learning and deep learning are being rapidly adopted across industries. AI-optimized hardware and software will be critical to support resource-intensive models and deliver speed, accuracy and scalability.

AMD is looking to capitalize on this demand through its unified data center GPU architecture for AI acceleration. Meanwhile, rival Nvidia dominates the data center GPU space crucial for AI computing power.

Arm IPO Capitulates Amid Market Jitters

UK-based Arm Holdings, which supplies intellectual property for chips used in devices like smartphones, recently conducted a $40 billion IPO, one of the largest listings of 2023. However, Arm’s share price plunged below its IPO level soon after debuting in September.

The weak stock performance highlights investor skittishness around loss-making tech firms amid economic headwinds. ARM’s licensing model also faces risks as major customers like Apple and Qualcomm develop their own proprietary chip technologies and architectures.

Unlike Arm, AMD is on solid financial footing, with its data center and gaming chips seeing strong uptake. However, AMD must still convince Wall Street that its growth trajectory warrants robust valuations, especially as Intel mounts a comeback.

Betting on Open Software Innovation

AMD’s Nod.ai purchase aligns with its strategic focus on open software ecosystems that promote accessibility and standardization for AI developers. Open software and hardware foster collaborative innovation within the AI community.

With Nod.ai’s talents added to the mix, AMD is betting it can democratize and optimize AI workload deployment across the full range of AMD-powered devices – from data center CPUs and GPUs to client PCs, gaming consoles and mobile chipsets.

If successful, AMD could carve out an advantage as the preferred AI acceleration platform based on open software standards. This contrasts with Nvidia’s proprietary approaches and closed ecosystems tailored exclusively for its GPUs.

As AI permeates across industries and applications, AMD is making the right long-term bet on open software innovation to unlock the next phase of computing.

Release – Finalists Named for 2023 ISG Paragon Awards™ EMEA

Posted on by aweinsoff@channelchek.com

Research News and Market Data on III

10/10/2023

Program recognizes innovative approaches to leveraging technology and new operating models for business success

LONDON–(BUSINESS WIRE)– Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, today announced the finalists for the 2023 ISG Paragon Awards™ EMEA, which celebrate the ongoing transformation of sourcing industry partnerships through new approaches and technologies.

Winners in each category will be selected by a panel of independent industry experts and announced at the ISG Sourcing Industry Awards Gala Dinner on Wednesday, November 15, at the Park Plaza Victoria London.

Here are the EMEA finalists for the 2023 awards:

Excellence: Recognizing outstanding delivery by a technology or service provider

  • Genpact with a global power management company
  • Infosys BPM with a retail company
  • Microland with a major aviation and aerospace company
  • Tech Mahindra with a U.K. government agency
  • Unisys with a global consumer goods company

Innovation: Recognizing the importance of imagination and entrepreneurial spirit in helping organizations future-proof their businesses and better serve clients

  • Coforge with an insurance technology provider
  • IBM with an American telecommunications conglomerate
  • Infosys with an elevator and escalator manufacturer
  • WNS with a logistics and shipping company

Transformation: Recognizing the successful transformation of an organization or key business function

  • Colt Technology Services with a media company
  • Hexaware with a leading airline in the Middle East
  • Mphasis with a leading materials engineering company
  • Quinnox with a financial services organization
  • RIEDEL Networks with a document solution provider

Workplace of the Future: Recognizing client and employee experience and productivity beyond technology

  • Atos with a public sector organization in Scotland
  • Cognizant with the U.K.’s railway infrastructure manager
  • Hexaware with a global leader in workforce solutions
  • Teleperformance with a major tourism company
  • Unisys with a multinational chemical company

Environmental Sustainability: Recognizing outstanding positive impacts in one or more environmental sustainability fields for clients, consumers, communities and/or employees

  • Infosys with an automotive manufacturer
  • Telefónica Tech with a roofing manufacturer in Europe
  • Tech Mahindra with an Ethiopia utility company
  • GEP with a multinational pharmaceutical company
  • Infosys with a smart city initiative participating company

The ISG Paragon Awards™ EMEA, produced by ISG Events, recognize innovative ways of driving business success by leveraging digital technology and new operating models.

“This is an exciting time to be in the technology industry, as enterprises and providers work together to enable business growth,” said Steve Hall, partner and president, ISG EMEA. “Technology service providers continue to enable and deliver some of the most readily available pools of talent in both traditional and emerging technologies, geographies, markets and skill areas. Congratulations to the finalists for the 2023 ISG Paragon Awards EMEA for their innovation and productivity.”

The November 15 awards gala takes place during the ISG Sourcing Industry Conference for EMEA. In addition to the ISG Paragon Awards EMEA, ISG will announce the winners of the ISG Star of Excellence™ Awards, which recognize excellence in provider delivery based on enterprise client feedback, and the winners of the ISG Provider Lens™ Awards, recognizing providers named as Leaders in ISG Provider Lens™ studies.

Full details of the ISG Paragon Awards program are available on the award website.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 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 1,600 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.

Source: Information Services Group, Inc.

Comtech Telecommunications (CMTL) – Major New Awards

Posted on by cpereira@noblefcm.com


Tuesday, October 10, 2023

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, Managing Director, Equity Research Analyst, Generalist , 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.

U.S. Army Award. Yesterday, Comtech announced that it was recently awarded a U.S. Army contract with a maximum ceiling value of $544 million. The task order was awarded on Comtech’s existing contract with the U.S. Army, which leverages the ten-year, $5.1 billion Global Tactical Communications Systems II IDIQ contract vehicle.

Details. Under the contract, Comtech will provide onsite professional engineering services as well as supply and support the Company’s market leading satellite and terrestrial networking communications technologies for the Project Manager Tactical Network for the Global Field Service Representative (GFSR) support program. The GFSR program provides ongoing communications and IT infrastructure support for the Army, Air Force, Navy, Marine Corps, and NATO-enabling U.S. and coalition forces to maintain robust, resilient, and secure connectivity for global all-domain operations in all environments.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

Release – ISG to Announce Third-Quarter Financial Results

Posted on by aweinsoff@channelchek.com

Research News and Market Data on III

10/5/2023

STAMFORD, Conn.–(BUSINESS WIRE)– Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, said today it will release its third-quarter financial results on Thursday, November 2, 2023, at approximately 4:15 p.m., U.S. Eastern Time.

The firm will host a conference call with investors and industry analysts at 9 a.m., U.S. Eastern Time, the following day, Friday, November 3. Dial-in details are as follows:

  • The dial-in number for U.S. participants is +1 (888) 330-2057.
  • International participants should call +1 (646) 960-0203.
  • The security code to access the call is 1482106.

Participants are requested to dial in at least five minutes before the scheduled start time.

A recording of the conference call will be accessible on ISG’s website (www.isg-one.com) for approximately four weeks following the call.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 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 1,600 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.

Source: Information Services Group, Inc.

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Release – Bitcoin Depot Amends Equity Support Agreement

Posted on by aweinsoff@channelchek.com

Research News and Market Data on BTM

October 04, 2023 8:00 AM EDTDownload as PDF

ATLANTA, Oct. 04, 2023 (GLOBE NEWSWIRE) — Bitcoin Depot Inc. (“Bitcoin Depot” or the “Company”), a U.S.-based Bitcoin ATM operator and leading fintech company, today announced the execution of an amendment (the “Amendment”) to the PIPE Agreement dated June 23, 2023 (the “PIPE Agreement”) between the Company, certain of its subsidiaries and the subscribers thereto (the “Subscribers”). Pursuant to the Amendment and upon the closing of the private sale by the Subscribers of all of their shares of Series A Convertible Preferred Stock of the Company (the “Series A Preferred”) as discussed below, all Reference Periods (as defined in the PIPE Agreement) will be pulled forward and the economic arrangements set forth in the forward agreement provisions in the PIPE Agreement settled in full based on the net price in the private sale. The Company will receive a small payment in connection with the settlement of the Reference Periods.

In addition, certain institutional investors, including AWM Investment Company, Inc., the investment adviser of the Special Situations Funds, have agreed to purchase an aggregate of 3,475,000 Series A Preferred beneficially owned by the Subscribers (the “Preferred Sale”) in a private transaction. The Series A Preferred are convertible at the option of the holders into Class A Common Stock at an exchange ratio of 1:1. The Company will not receive any proceeds from the Preferred Sale.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities law of any such state or jurisdiction.

About Bitcoin Depot

Bitcoin Depot Inc. (Nasdaq: BTM) was founded in 2016 with the mission to connect those who prefer to use cash to the broader, digital financial system. Bitcoin Depot provides its users with simple, efficient and intuitive means of converting cash into Bitcoin, which users can deploy in the payments, spending and investing space. Users can convert cash to Bitcoin at Bitcoin Depot’s kiosks and at thousands of name-brand retail locations in 48 U.S. states through its BDCheckout product. The Company has the largest market share in North America with approximately 6,400 kiosk locations as of June 30, 2023. Learn more at www.bitcoindepot.com.

Cautionary Note Regarding Forward-Looking Statements

This press release and any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Forward-looking statements are any statements other than statements of historical fact, and include, but are not limited to, statements regarding the expectations of plans, business strategies, objectives and growth and anticipated financial and operational performance, including our growth strategy and ability to increase deployment of our products and services, the anticipated effects of the Amendment, and the closing of the Preferred Sale. These forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements are often identified by words such as “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those words or similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control.

These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; failure to realize the anticipated benefits of the business combination; future global, regional or local economic and market conditions; the development, effects and enforcement of laws and regulations; our ability to manage future growth; our ability to develop new products and services, bring them to market in a timely manner and make enhancements to our platform; the effects of competition on our future business; our ability to issue equity or equity-linked securities; the outcome of any potential litigation, government and regulatory proceedings, investigations and inquiries; and those factors described or referenced in filings with the Securities and Exchange Commission. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect our expectations, plans or forecasts of future events and views as of the date of this press release. We anticipate that subsequent events and developments will cause our assessments to change.

We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statements, except where we are expressly required to do so by law. All written and oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.

Contacts:

Investors 
Cody Slach, Alex Kovtun 
Gateway Group, Inc. 
949-574-3860 
BTM@gateway-grp.com

Media 
Zach Kadletz, Brenlyn Motlagh, Ryan Deloney 
Gateway Group, Inc.
949-574-3860 
BTM@gateway-grp.com

Source: Bitcoin Depot Inc.

Released October 4, 2023

Biotech Poised for a Powerful Comeback

Posted on by slightbourne@noblecapitalmarkets.com

After a fallow period, signs point to the biotech sector regaining its prior momentum. Several factors indicate a pending return to rapid growth and prolific innovation for biotech companies. This prospective resurgence could replicate the boom years of the 1980s and 1990s.

The first driver is scientific advancements that open new possibilities. CRISPR gene editing has revolutionized biotech, allowing cheaper and easier manipulation of genetic code. This enables creation of novel treatments and cures previously out of reach. Other breakthroughs like mRNA vaccines have proven the ability to rapidly develop radically new therapeutic approaches.

Vast amounts of genomic data generated in recent decades have also unlocked new understandings of biologically rooted diseases. By identifying key genetic drivers, drug targets can be validated to produce higher success rates in clinical trials. Failed drug candidates have historically been a major drag on biotech.

Substantial investment capital is also lining up behind biotech again after the sector fell out of favor. While biotech IPOs dropped sharply in 2022, venture funding actually rose to its second highest level ever at $32 billion. Investor appetite remains strong, especially for companies with promising new platforms.

Large cash piles among pharmaceutical giants could further bolster biotech. Big pharma companies have routinely turned to buying biotech firms to fill product pipelines. With major players like Pfizer and Merck holding over $25 billion in deployable cash reserves, expect more dealmaking ahead.

Take a look at several emerging growth biotech companies by looking at Noble Capital Market’s Senior Research Analyst Robert LeBoyer’s coverage list.

Regulatory incentives additionally sweeten the proposition of getting back into biotech. The FDA is actively supporting development in areas like gene therapy, rare diseases, and certain cancers through its pilot programs and priority reviews. This guidance can derisk investments.

The maturing ecosystem around biotech also fuels its potential rebound. Experienced veteran executives can now be tapped to steer startups. Clustering in hubs like Boston and San Francisco persists to provide concentration of talent, capital, and resources.

While risks like high failure rates remain, the ingredients are aligning for biotech’s next generation. Comparisons to the internet boom of the late 1990s resonate, with biotech representing a similar pivotal platform shift. The world’s demographics also underpin demand for new therapies – aging populations in developed nations will drive need.

This fertile environment parallels periods that produced prior biotech booms. In the late 1970s and 80s, the industry arose virtually from scratch around pioneering companies like Genentech and Amgen. The advent of genetic engineering allowed creation of the first biologic drugs.

Another surge came through the 90s as enabling technologies like high throughput screening scaled up the drug discovery process. The mapping of the human genome unleashed another wave of possibilities.

Today’s scientific advances pose an even greater leap, allowing drug development and treatment paradigms hardly imaginable just decades ago. The bounds of human understanding keep expanding.

The stars are aligning for biotech 2.0, an evolution building on past successes but catalyzed by new potentials. It promises to usher in an era of curative therapies, genomic precision, and accelerated innovation. The post-pandemic landscape offers the ideal springboard for this biotech revival.

With therapeutic bottlenecks getting cleared, investor interest rekindling, and confidence restored, expect biotech to reclaim its prior growth trajectory. The lessons of past booms were well learned, leaving companies better positioned to capitalize. Weapons to fight disease grow more powerful by the month.

The public expects and demands new treatments for pressing needs, from cancer to neurological conditions. Demographics favor biotech’s prospects as populations age. An energized ecosystem stands ready to nourish exciting science from lab to market.

The pieces are in place for biotech liftoff. As science unlocks new horizons, investor insight aligns with public health demands, fueling momentum. Biotech’s foundational role in driving modern medical progress is poised to only accelerate. The cycle of innovation spins up again.

DoorDash Ditches NYSE for Nasdaq in Major Stock Exchange Switch

Posted on by slightbourne@noblecapitalmarkets.com

Food delivery app DoorDash announced it will transfer its stock exchange listing from the New York Stock Exchange to the Nasdaq. The company will begin trading on the Nasdaq Global Select Market under the ticker ‘DASH’ starting September 27, 2023.

This represents a high-profile switch that exemplifies the fierce competition between the NYSE and Nasdaq to attract Silicon Valley tech listings. It also reflects shifting sentiments around brand associations and target investor bases.

DoorDash first went public on the NYSE in December 2020 at a valuation of nearly $60 billion. At the time, the NYSE provided the prestige and validation desired by the promising young startup.

However, DoorDash has since grown into an industry titan boasting a market cap of over $30 billion. As a maturing technology company, Nasdaq’s brand image and investor mix provide better positioning.

Tony Xu, co-founder and CEO of DoorDash, emphasized the benefits of the Nasdaq in the company’s announcement. “We believe DoorDash will benefit from Nasdaq’s track record of being at the forefront of technology and progress,” he said.

Nasdaq has built a reputation as the go-to exchange for Silicon Valley tech firms and growth stocks. Big name residents include Apple, Microsoft, Amazon, Tesla, Alphabet, and Facebook parent company Meta.

The exchange is also home to leading next-gen companies like Zoom, DocuSign, Crowdstrike, Datadog, and Snowflake. This creates an environment tailor-made for high-growth tech outfits.

Meanwhile, the NYSE leans toward stalwart blue chip companies including Coca Cola, Walmart, Visa, Walt Disney, McDonald’s, and JPMorgan Chase. The historic exchange tends to attract mature businesses and financial institutions.

Another factor likely influencing DoorDash is the investor makeup across the competing exchanges. Nasdaq generally appeals more to growth-oriented funds and active traders. The NYSE caters slightly more to institutional investors like pension funds, endowments, and passive index funds.

DoorDash’s switch follows ride sharing pioneer Lyft’s jump from Nasdaq to the NYSE exactly one year ago. Like DoorDash, Lyft desired a brand halo as it evolved past its early startup days.

“It’s a signal of us being mature, of us continuing to build a lasting company,” said Lyft co-founder John Zimmer at the time of the company’s NYSE listing.

Jared Carmel, managing partner at Manhattan Venture Partners, believes these exchange transfers reflect the “changing identities of the companies.”

As startups develop into multi-billion dollar giants, they evaluate whether their founding exchange still aligns with their needs and desired perceptions. Brand association and shareholder registration are becoming as important as operational capabilities for listings.

High-flying growth stocks like DoorDash also consider indexes, as the Nasdaq 100 often provides greater visibility and buying power from passive funds tracking the benchmark. Prominent inclusion in those indexes requires trading on Nasdaq.

Whether mature blue chips or emerging Silicon Valley darlings, the rivalry between Nasdaq and NYSE will continue heating up as each exchange vies to attract and retain brand name public companies. With lucrative listing fees on the line, exchanges will evolve branding, services, and capabilities to better cater to their target customers.

The DoorDash switcheroo exemplifies the changing perspectives and motivations influencing exchange selection. As companies lifecycles and personas transform, they reevaluate decisions made during those frenetic early IPO days.

One Stop Systems (OSS) – A New Market

Posted on by cpereira@noblefcm.com


Wednesday, September 27, 2023

One Stop Systems, Inc. (OSS) designs and manufactures innovative AI Transportable edge computing modules and systems, including ruggedized servers, compute accelerators, expansion systems, flash storage arrays, and Ion Accelerator™ SAN, NAS, and data recording software for AI workflows. These products are used for AI data set capture, training, and large-scale inference in the defense, oil and gas, mining, autonomous vehicles, and rugged entertainment applications. OSS utilizes the power of PCI Express, the latest GPU accelerators and NVMe storage to build award-winning systems, including many industry firsts, for industrial OEMs and government customers. The company enables AI on the Fly® by bringing AI datacenter performance to ‘the edge,’ especially on mobile platforms, and by addressing the entire AI workflow, from high-speed data acquisition to deep learning, training, and inference. OSS products are available directly or through global distributors. For more information, go to www.onestopsystems.com.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

Submarine Award. One Stop Systems has received an order to design and develop prototypes for a sonar data processing system to be used in a foreign navy submarine application. The order expands OSS’s AI Transportable solutions into a new vertical, new prime relationship, and new application.

Details. The award was procured through a new global defense prime contractor. The win represents the first AI transportable program win for a foreign navy as well as for a subsurface application. OSS expects to deliver the first prototypes by the end of 2023, followed by potential production orders in 2024. If production orders begin, we anticipate the award could add over $2 million to 2024 revenue.


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