Category: Technology

Microsoft Scores AI Talent by Hiring OpenAI’s Sam Altman

Posted on by [email protected]

Microsoft emerged victorious in the artificial intelligence talent wars by hiring ousted OpenAI CEO Sam Altman and other key staff from the pioneering startup. This coup ensures Microsoft retains exclusive access to OpenAI’s groundbreaking AI technology for its cloud and Office products.

OpenAI has been a strategic partner for Microsoft since 2019, when the software giant invested $1 billion in the nonprofit research lab. However, the surprise leadership shakeup at OpenAI late last week had sparked fears that Microsoft could lose its AI edge to hungry rivals.

Hiring Altman and other top OpenAI researchers nullifies this threat. Altman will lead a new Microsoft research group developing advanced AI. Joining him from OpenAI are co-founder Greg Brockman and key staff like Szymon Sidor.

This star-studded team will provide Microsoft with a huge boost in the race against Google, Amazon and Apple to dominate artificial intelligence. Microsoft’s share price rose 1.5% on Monday on the news, adding nearly $30 billion to its valuation.

The poaching also prevents Altman from jumping ship to competitors, according to analysts. “If Microsoft lost Altman, he could have gone to Amazon, Google, Apple, or a host of other tech companies,” said analyst Dan Ives of Wedbush Securities. “Instead he is safely in Microsoft’s HQ now.”

OpenAI Turmoil Prompted Microsoft’s Bold Move

The impetus for Microsoft’s talent grab was OpenAI’s messy leadership shakeup last week. Altman and other executives were reportedly forced out by OpenAI board chair.

The nonprofit recently created a for-profit subsidiary to commercialize its research. This entity was prepping for a share sale at an $86 billion valuation that would financially reward employees. But with Altman’s ouster, these lucrative payouts are now in jeopardy.

This uncertainty likely prompted top OpenAI staff to leap to the stability of Microsoft. Analysts believe more employees could follow as doubts grow about OpenAI’s direction under Emmett Shear.

Microsoft’s infrastructure and resources also make it an attractive home. The tech giant can provide the enormous computing power needed to develop ever-larger AI models. OpenAI’s latest system, GPT-3, required 285,000 CPU cores and 10,000 GPUs to train.

By housing OpenAI’s brightest minds, Microsoft aims to supercharge its AI capabilities across consumer and enterprise products.

The Rise of AI and Competition in the Cloud

Artificial intelligence is transforming the technology landscape. AI powers everything from search engines and digital assistants to facial recognition and self-driving cars.

Tech giants are racing to lead this AI revolution, as it promises to reshape industries and create trillion-dollar markets. This battle spans hardware, software and talent acquisition.

Microsoft trails category leader Google in consumer AI, but leads in enterprise applications. Meanwhile, Amazon dominates the cloud infrastructure underpinning AI development.

Cloud computing and AI are symbiotic technologies. The hyperscale data centers operated by Azure, AWS and Google Cloud provide the computational muscle for AI training. These clouds also allow companies to access AI tools on-demand.

This has sparked intense competition between the “Big 3” cloud providers. AWS currently has 33% market share versus 21% for Azure and 10% for Google Cloud. But Microsoft is quickly gaining ground.

Hiring Altman could significantly advance Microsoft’s position. His team can create exclusive AI capabilities that serve as a differentiator for Azure versus alternatives.

Microsoft’s Prospects in AI and the Stock Market

Microsoft’s big OpenAI poach turbocharged its already strong prospects in artificial intelligence. With Altman on board, Microsoft is better positioned than any rival to lead the next wave of AI innovation.

This coup should aid Microsoft’s fast-growing cloud business. New AI tools could help Microsoft chip away at AWS’s dominance while holding off Google Cloud.

If Microsoft extends its edge in enterprise AI, that would further boost revenue and earnings. This helps explain Wall Street’s positive reaction lifting Microsoft’s stock 1.5% and adding $30 billion in market value.

The success of cloud and AI has fueled Microsoft’s transformation from a stagnant also-ran to a Wall Street darling. Its stock has nearly tripled since early 2020 as earnings rapidly appreciate thanks to its cloud and subscription-based revenue.

Microsoft stock trades at a reasonable forward P/E of 25 and offers a dividend yield around 1%. If Microsoft keeps leveraging AI to expand its cloud business, its stock could have much further to run.

Hiring Altman and deploying OpenAI’s technology across Microsoft’s vast resources places a momentous technology advantage within the company’s grasp. Realizing this potential would be a major coup for Satya Nadella as CEO. With OpenAI’s crown jewels now safely in house, Microsoft’s tech lead looks more secure than ever.

Release – ISG Presents 2023 ISG Star of Excellence™ Awards to Accenture, HCLTech and TCS

Posted on by [email protected]

Research News and Market Data on III

11/16/2023

Annual awards honor technology and business service providers that deliver the highest level of customer service to enterprise clients

LONDON–(BUSINESS WIRE)– Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, last night presented the 2023 ISG Star of Excellence Awards™ to Accenture, HCLTech and TCS, recognizing the three service providers for consistently demonstrating the highest standards of customer service excellence in the past year, based on direct feedback from enterprise customers.

In a ceremony at the ISG Sourcing Industry Awards Gala Dinner, held at the conclusion of the ISG Sourcing Industry Conference at the Park Plaza Victoria London, the providers were awarded the sixth annual overall ISG Star of Excellence Awards for earning the highest cumulative customer experience scores across all regions, industries and technology areas.

The ISG Star of Excellence Awards, part of the ISG Provider Lens™ research program, is the premiere industry recognition for the technology and business services industry. Providers are ranked on the quality of their services based on direct feedback from enterprise customers in the areas of Business Continuity and Flexibility; Collaboration and Transparency; Execution and Delivery; Governance and Compliance; Innovation and Thought Leadership, and People and Cultural Fit.

The winners are chosen from among a group of more than 2,000 service providers and vendors ISG analyzes and evaluates each year. This year, ISG received feedback from enterprise clients with roles in IT, operations, lines of business, procurement and vendor management and other areas, and operating in the Americas, EMEA and Asia Pacific.

In addition to the overall ISG Star of Excellence Award winners, last night’s ceremony recognized:

  • The top provider for each emerging technology area, with Hexaware named the universal winner for emerging technology;
  • The top provider for the Americas (Microland), EMEA (Stefanini) and Asia Pacific (TCS), with Genpact receiving the Global Award;
  • The top provider for each industry, with Persistent Systems named the universal industry winner;
  • The top ITO provider for each technology area, with HCLTech named ITO universal technology winner;
  • The top BPO provider by service area, with HCLTech named the universal BPO winner.

HCLTech was presented with a total of six awards across all categories, TCS a total of four awards and Persistent Systems a total of four awards. A complete list of winners can be found here.

Paul Gottsegen, president of ISG Research and Client Experience, noted the importance of customer feedback to the continued advancement of the entire industry.

“In 2023, more enterprises than ever shared their provider experiences through the ISG Star of Excellence program. This valuable feedback helps providers see themselves through the eyes of their customers and deepens ISG’s understanding of providers to support our research and sourcing advisory services,” said Gottsegen. “We are pleased to see the CX scores of providers are rising, even as clients’ expectations are increasing, especially around innovation and thought leadership.”

The ISG Star of Excellence™ CX research program scores and ranks providers based on customer survey responses. Ongoing surveys ask enterprises to rate their experiences with hundreds of IT and business services providers across industries, regions and technologies. The research goes beyond general satisfaction to explore, in depth, customer experiences with specific services and solutions offered by providers—research that is tied directly to ISG Provider Lens™ quadrant evaluations.

For more information on the ISG Star of Excellence™ continuous CX research program, visit this webpage. Service providers can nominate their customers to be a part of the program at any time throughout the year.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG’s enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

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.

One Stop Systems (OSS) – A New Contract and a New Client

Posted on by [email protected]


Wednesday, November 15, 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.

New Win. One Stop Systems, Inc. (OSS), has won a multi-million-dollar program with Leidos’ Dynetics, a provider of mission-critical solutions for the U.S. government. The new award with a new client illustrates management’s focus on broadening end markets and client relationships, in our view.

Contract Details. Valued at approximately $2.5 million to $3.5 million over the next three years, with an initial award of $500,000, the award is the first multi-year win OSS has secured with this prime contractor. OSS will provide its proprietary transportable compute and storage technology designed to power an emerging specialized mobile AI signal collection application.


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. 

Blackboxstocks (BLBX) – Reports Third Quarter Results

Posted on by [email protected]


Wednesday, November 15, 2023

Blackboxstocks, Inc. is a financial technology and social media hybrid platform offering real-time proprietary analytics and news for stock and options traders of all levels. Our web-based software employs “predictive technology” enhanced by artificial intelligence to find volatility and unusual market activity that may result in the rapid change in the price of a stock or option. Blackbox continuously scans the NASDAQ, New York Stock Exchange, CBOE, and all other options markets, analyzing over 10,000 stocks and up to 1,500,000 options contracts multiple times per second. We provide our users with a fully interactive social media platform that is integrated into our dashboard, enabling our users to exchange information and ideas quickly and efficiently through a common network. We recently introduced a live audio/video feature that allows our members to broadcast on their own channels to share trade strategies and market insight within the Blackbox community. Blackbox is a SaaS company with a growing base of users that spans 42 countries; current subscription fees are $99.97 per month or $959.00 annually. For more information, go to: www.blackboxstocks.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.

3Q2023 Results. Revenue for the Company was $728,468 compared to $1.2 million last year. Average monthly revenue per user was $76.37 for the quarter compared to $78.19 in the prior year period. Operating expenses totaled $1.3 million compared to $1.9 million last year. Blackboxstocks reported a net loss of $671,745 or EPS loss of $0.21, compared to a net loss of $1.3 million or $0.40 EPS loss last year. Adjusted EBITDA was a negative $513,026 versus a negative $1.1 million in the prior year.

Member Count. Blackboxstocks had an average member count of 3,174 at the end of the quarter, down from 3,937 at the end of the second quarter and 5,197 last year. This continues a trend of decreasing users experienced by the company on its products for the year. The Company is exploring strategic marketing partnerships to increase the growth of its products.


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. 

Microsoft Makes Waves with New AI and ARM Chips

Posted on by [email protected]

Microsoft made waves this week by unveiling its first ever custom-designed chips at the Ignite conference. The tech giant introduced two new processors: the Maia 100 chip for artificial intelligence workloads and the Cobalt 100 chip for general computing purposes. These new silicon offerings have the potential to shake up the chip industry and cloud computing markets.

The Maia 100 is Microsoft’s answer to the AI accelerators from rivals like Nvidia and Amazon. It is tailored to boost performance for AI tasks like natural language processing. During Ignite, Microsoft demonstrated Maia handling queries for its Bing search engine, powering the Copilot coding assistant, and running large OpenAI language models.

Microsoft has been collaborating closely with OpenAI and is a major investor in the AI research company. OpenAI’s popular ChatGPT was trained on Azure using Nvidia GPUs. By designing its own chip, Microsoft aims to reduce reliance on third-party silicon for AI workloads.

Though performance details remain unclear, Microsoft stated that Maia handles AI tasks with high throughput and low latency. It emphasized efficiency as a key design goal. The chip was engineered in close consultation with Microsoft’s internal AI teams to ensure it fits their requirements.

Microsoft has created novel liquid cooling technology called Sidekicks to work alongside Maia server racks. This advanced thermal management unlocks Maia’s full processing capacity while avoiding the overheating issues that often plague GPU-powered data centers.

When available on Azure, Maia will provide customers access to specialized AI hardware on demand instead of buying dedicated GPUs. Microsoft did not provide a timeline for Maia’s availability or pricing. But offering it as a cloud service instead of a physical product sets Maia apart from AI chips from Intel, Nvidia and others.

The second new chip announced at Ignite was the Cobalt 100 ARM-based processor for general computing. It is expected to deliver a 40% performance boost over existing Azure ARM chips from Ampere.

Microsoft believes Cobalt will provide a compelling alternative to Intel’s server CPUs for cloud workloads. Companies like Amazon have already demonstrated success in cloud data centers by transitioning from Intel to custom ARM chips.

Virtual machines powered by Cobalt will become available on Azure in 2024. Microsoft is currently testing it for key services like Teams and Azure SQL database. More efficient ARM servers can translate to lower costs for cloud customers.

The Cobalt announcement highlights Microsoft’s growing reliance on ARM architecture across its cloud infrastructure. ARM chips are known for power efficiency in mobile devices, but companies like Amazon, Microsoft and Apple now recognize their benefits for data centers too.

By designing its own server-class ARM processor, Microsoft can optimize performance and features specifically for its cloud services. With both Maia and Cobalt, Microsoft aims to give Azure a competitive edge over rivals like AWS and Google Cloud.

Microsoft has lagged behind in cloud infrastructure market share, but introducing unique silicon could help close the gap. Its vertically integrated approach produces chips tailor-made for AI and its cloud platform. With demand for AI compute and cloud services booming, Microsoft’s gambit on custom chips could soon pay dividends.

Airbnb Makes First Acquisition as Public Company, Buys AI Startup

Posted on by [email protected]

Airbnb has made its first acquisition since going public in 2020, purchasing artificial intelligence startup Gameplanner.AI for just under $200 million. The deal marks Airbnb’s intent to integrate more AI technology into its platform to enhance the user experience.

Gameplanner.AI was founded in 2020 and has operated in stealth mode, away from the public eye. The startup was co-founded by Adam Cheyer, one of the original creators of the Siri voice assistant acquired by Apple. Cheyer also co-founded Viv Labs, the technology behind Samsung’s Bixby voice assistant.

With the acquisition, Airbnb is bringing Cheyer’s AI expertise in-house. In a statement, Airbnb said Gameplanner.AI will accelerate development of AI projects designed to match users to ideal travel recommendations.

Airbnb’s CEO Brian Chesky has previously outlined plans to transform Airbnb into a “travel concierge” that learns about user preferences over time. The integration of Gameplanner.AI’s technology could allow Airbnb to provide highly personalized suggestions for homes and experiences based on an individual’s travel history and interests.

For example, the AI could recommend beach houses for a user that has booked seaside destinations in the past, or suggest museums and restaurants suited to a traveler’s tastes. This would enhance the trip planning experience and help users discover new, relevant options.

The acquisition aligns with Chesky’s vision to have AI play a central role in Airbnb’s future. With Gameplanner.AI’s specialized knowledge, Airbnb can refine its AI models and more seamlessly incorporate predictive data, natural language processing, and machine learning across its apps and website.

Strategic First Acquisition for Airbnb

The purchase of Gameplanner.AI is Airbnb’s first acquisition since going public in December 2020. The deal could signal a shift in Airbnb’s M&A strategy as it looks to supplement organic growth with targeted acquisitions.

The ability to tap into Gameplanner.AI’s talent pool and proprietary technology accelerates Airbnb’s timeline for deploying more sophisticated AI tools. Developing similar capabilities in-house could have taken years and delayed the introduction of new AI features.

Acquiring an established startup with proven expertise allows Airbnb to boost its competitive edge in AI much faster. As travel continues to rebound from the pandemic, Airbnb can capitalize on these enhancements sooner to attract and retain users.

The Gameplanner.AI deal is relatively small for Airbnb, which as of September 2023 held $11 billion in cash and liquid assets on its balance sheet. But the acquisition could pave the way for more M&A deals that augment Airbnb’s core business.

As Airbnb branches out into new offerings like Airbnb Experiences and long-term rentals, the company may seek to acquire startups innovating in these spaces as well. For investors, Airbnb’s renewed openness to acquisitions makes it a more well-rounded and potentially appealing target.

AI Race in Travel Heats Up

Airbnb’s acquisition also comes amid surging demand for AI across the travel industry. Google is rumored to be investing hundreds of millions into a startup called Character AI that creates virtual travel companions powered by artificial intelligence.

Character AI lets users chat with AI versions of celebrities and public figures, including a virtual travel advisor designed to mimic the personality and advice of Sir David Attenborough.

With travel demand rebounding sharply, Google and Airbnb are demonstrating the value of AI for reinventing the trip planning and booking process. Both companies recognize the technology’s potential for driving personalization and convenience in the fiercely competitive sector.

As part of the wider rush to AI adoption, expect Airbnb’s move to spur more activity in the space as other travel platforms vie to enhance customer experiences through intelligent automation. The Gameplanner.AI acquisition gives Airbnb first-mover advantage, but likely won’t be the last pivot toward AI we see in the industry.

For Airbnb, integrating advanced AI unlocks tremendous opportunity to tighten its grip on the global accommodation and experiences market. With innovation led by strategic acquisitions like this, Airbnb aims to extend its position as the premier one-stop shop for travel.

One Stop Systems (OSS) – Reports Third Quarter 2023 Results

Posted on by [email protected]


Monday, November 13, 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.

3Q23 Results. Revenue came in at $13.7 million, slightly above our $13.5 million estimate, but down 27% y-o-y, reflecting the continued runoff of the Disguise business, which contributed $4.3 million of revenue in the year ago quarter. Higher operating expenses, including some one-time items, drove a net loss of $3.6 million, or a loss of $0.18/sh in the quarter, compared to net income of $132,533, or EPS of $0.01 last year. Adjusted loss was $0.03/sh compared to EPS of $0.03 last year. We had forecasted a loss of $0.10/sh.

Unique Position. We continue to believe OSS has carved out a unique position in the robust growth markets driven by artificial intelligence and sensor fusion, particularly in rugged high-performance compute demand at the Edge. Management remains committed to expanding efforts to secure new prime contractors, vehicle platforms, and multiyear contracts, both domestically and internationally.


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. 

Comtech Telecommunications (CMTL) – New Contract; Completed Sale

Posted on by [email protected]


Monday, November 13, 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.

New Order. Comtech announced a $20.0 million order from the Company’s UK-based partner, Spectra Group. The order will allow Spectra Group, the appointed regional distributor of Comtech’s Compact Over-the-Horizon Transportable Terminal (COMET), to service multiple orders already received, and several expected follow-on orders from undisclosed customers in the NATO and European regions. In September 2023, Spectra Group announced the receipt of a $8.0 million order from UK MoD to equip 3 (UK) Division with Comtech’s COMET systems.

COMET. The COMET system is designed to be easily integrated with other Department of Defense (DoD) and coalition tactical, mobile, and fixed communications systems to provide resilient, secure beyond-line-of-sight (BLOS) capabilities in some of the world’s most challenging 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. 

Virgin Galactic Stock Up 30% on Cost Cutting Initiative

Posted on by [email protected]

Shares of Virgin Galactic Holdings Inc. (SPCE) surged over 30% on Thursday after the company unveiled plans to reduce costs and temporarily pause spaceflight operations. The stock jumped from $1.56 to over $2 as investors reacted positively to Virgin Galactic’s aim to conserve cash while developing its next generation of spaceships.

Virgin Galactic announced it will wind down flights of its existing VSS Unity spacecraft in mid-2024. The company will then focus resources on finalizing assembly of its new Delta class spaceship line.

The Delta class ships represent the future of Virgin Galactic’s space tourism business. Pausing VSS Unity flights will allow engineers to concentrate on getting the Delta fleet ready to fly tourists on suborbital trips to the edge of space.

Cutting Costs to Fund New Spaceships

To finance the spaceship transition, Virgin Galactic is cutting costs substantially. This week the company laid off around 18% of its workforce, about 185 employees. The reductions will generate $25 million in annual cost savings.

The job cuts come as Virgin looks to trim expenses and streamline operations during the fleet transition. Management aims to direct as much capital as possible toward completing work on the Delta class vessels.

Virgin Galactic also announced it will reduce the flight rate of its current VSS Unity ship. Since June, VSS Unity has been flying commercial tourist missions roughly once per month. Going forward it will shift to quarterly flights before fully standing down in 2024.

Fewer VSS Unity flights will conserve rocket fuel and other operating costs. These savings can be redirected to accelerate progress on the new generation Delta ships.

VSS Unity Flights Winding Down

VSS Unity began commercial service in July 2021 and has completed five revenue-generating passenger flights so far. It will continue making quarterly trips to the fringes of space until its retirement in mid-2024.

So far this year VSS Unity flew its first fully private astronaut mission in June. This was followed by its first Italian researcher flight in September. Both missions generated crucial revenue for Virgin Galactic.

But VSS Unity is only capable of flying four passengers to space on each trip. The Delta class spacecraft will increase that capacity to six passengers. This 50% bump is critical to ramping up Virgin’s space tourism business.

The company is aiming to begin Delta test flights from its New Mexico spaceport in 2025. With a smoother flight profile and more spacious cabin, the Delta promises a superior overall experience compared to VSS Unity.

Stock Surges on Cash Conservation Plan

Virgin Galactic’s shares have suffered in 2022, falling over 50% year-to-date before Thursday’s 30% pop. The market responded favorably to management’s decisive actions to reinforce its financial position.

The workforce reductions and spaceflight pause will slow Virgin’s cash burn rate while buying time to ready the Delta fleet. With its existing cash balance, the company has ample runway to execute the transition.

Pausing VSS Unity flights will allow Virgin to upgrade ground infrastructure at its spaceport to support Delta operations. By winding down one program and preparing for the next, Virgin Galactic hopes to hit the ground running once the Delta ships are flight ready.

If executed successfully, the cost cutting and spaceflight hiatus could put Virgin in position to ramp up flights profitably after the Delta class ships come online. With improved ships unlocking expanded market opportunities, Virgin Galactic aims to soar both literally and financially over the long term.

BigBear.ai Makes Bold Move to Lead Vision AI Industry with Acquisition of Pangiam

Posted on by [email protected]

BigBear.ai, a provider of AI-powered business intelligence solutions, has announced the acquisition of Pangiam, a leader in facial recognition and biometrics, for approximately $70 million in an all-stock deal. The acquisition represents a major strategic move by BigBear.ai to expand its capabilities and leadership in vision artificial intelligence (AI).

Vision AI refers to AI systems that can perceive, understand and interact with the visual world. It includes capabilities like image and video analysis, facial recognition, and other computer vision applications. Vision AI is considered one of the most promising and rapidly growing AI segments.

With the acquisition, BigBear.ai makes a big bet on vision AI and aims to create one of the industry’s most comprehensive vision AI portfolios. Pangiam’s facial recognition and biometrics technologies will complement BigBear.ai’s existing computer vision capabilities.

Major Boost to Government Business

A key rationale and benefit of the deal is expanding BigBear.ai’s business with U.S. government defense and intelligence agencies. The company currently serves 20 government customers with its predictive analytics solutions. Adding Pangiam’s technology and expertise will open significant new opportunities.

Pangiam brings an impressive customer base that includes the Department of Homeland Security, U.S. Customs and Border Protection, and major international airports. Its vision AI analytics help these customers streamline operations and enhance security.

According to Mandy Long, BigBear.ai CEO, the combined entity will be able to “pursue larger customer opportunities” in the government sector. Leveraging Pangiam’s portfolio is expected to result in larger contracts for expanded vision AI services.

CombiningComplementary Vision AI Technologies

Technologically, the acquisition enables BigBear.ai to provide comprehensive vision AI solutions. Pangiam’s strength lies in near-field applications like facial recognition and biometrics. BigBear.ai has capabilities in far-field vision AI that analyzes wider environments.

Together, the combined portfolio covers the full spectrum of vision AI’s possibilities. BigBear.ai notes this full stack capability will be unique in the industry, giving the company an edge over other players.

The vision AI integration also unlocks new potential for BigBear.ai’s existing government customers. Its current predictive analytics solutions can be augmented with Pangiam’s facial recognition and biometrics tools. This builds on the company’s strategy to cross-sell new capabilities to established customers.

Long describes the alignment of Pangiam and BigBear.ai’s vision AI prowess as a key factor that will “vault solutions currently available in market.” The combined innovation assets create opportunities to push vision AI technology forward and build next-generation solutions.

Fast-Growing Market Opportunities

The acquisition comes as vision AI represents a $20 billion market opportunity predicted to grow at over 20% CAGR through 2030. It is one of the most dynamic segments within the booming AI industry.

With Pangiam under its wing, BigBear.ai is making a major play for leadership in this high-potential space. The new capabilities and customer reach significantly expand its addressable market in areas like government, airports, identity verification, and border security.

BigBear.ai also gains vital talent and IP to enhance its vision AI research and development efforts. This will help fuel its ability to bring new innovations to customers seeking advanced vision AI systems.

In a statement, BigBear.ai CEO Mandy Long called the merger a “holy grail” deal that delivers full spectrum vision AI capabilities spanning near and far field environments. It positions the newly combined company to capitalize on surging market demand from government and commercial sectors.

The proposed $70 million acquisition shows BigBear.ai is putting its money where its mouth is in terms of dominating the up-and-coming vision AI arena. With Pangiam’s tech and talent on board, BigBear.ai aims to aggressively pursue larger opportunities and cement its status as an industry frontrunner.

The Rise and Fall of WeWork: How the $47 Billion Startup Crumbled

Posted on by [email protected]

WeWork, once the most valuable startup in the United States with a peak valuation of $47 billion, filed for bankruptcy protection this week – a stunning collapse for a company that was the posterchild of the shared workspace industry.

Founded in 2010 by Adam Neumann and Miguel McKelvey, WeWork grew at breakneck speed by offering flexible office spaces for freelancers, startups and enterprises. At its peak in 2019, WeWork had 528 locations in 111 cities across 29 countries with 527,000 members.

The company was initially successful at attracting both customers and investors with its vision of creating communal workspaces. SoftBank, its biggest backer, poured in billions having bought into Neumann’s grand ambitions to revolutionize commercial real estate. WeWork was the cornerstone of SoftBank’s $100 billion Vision Fund aimed at taking big bets on tech companies that could be mold-breakers.

However, WeWork’s model of taking long-term leases and renting out spaces short-term led to persistent losses. The company lost $219,000 an hour in the 12 months prior to June 2023. Occupancy rates are down to 67% from 90% in late 2020. Yet WeWork had $4.1 billion in future lease payment obligations as of June.

Problematic corporate governance and mismanagement under Neumann also came under fire. Eyebrow-raising revelations around Neumann such as infusing the company with a hard-partying culture and cashing out over $700 million ahead of the planned IPO while retaining majority control further eroded confidence.

The lack of a path to profitability finally derailed the company’s prospects when it failed to launch its Initial Public Offering in 2019. The IPO was expected to raise $3 billion at a $47 billion valuation but got postponed after investors balked at buying shares. Neumann was forced to step down as CEO.

Since the failed IPO, WeWork has tried multiple strategies to right the ship. It has attempted to renegotiate leases, cut thousands of jobs, sold off non-core businesses, and reduced operating expenses significantly. For example, it got $1.5 billion in financing in exchange for control of its China unit in 2022.

WeWork also tried changing leadership to infuse more financial discipline. It brought in real estate veteran Sandeep Mathrani as CEO in 2020. Mathrani helped cut costs but could not fix the underlying business model. He was replaced in 2022 by David Tolley, an investment banker and private equity executive.

Additionally, WeWork tried merging with a special purpose acquisition company (SPAC) in 2021 that valued the company at $9 billion. But the co-working space leader continued struggling with low demand and high costs.

Commercial real estate landlords also pose an existential threat by offering their own flexible workspaces. Large property owners like CBRE and JLL now provide custom office spaces. With recession looming, demand for flexible office space has waned further.

As part of the Chapter 11 bankruptcy filing, WeWork aims to restructure its debt and shed expensive leases. However, it faces an uphill battle to rebuild its brand and regain customers’ trust. The flexible workspace model also faces an uncertain future given hybrid work arrangements are becoming permanent for many companies.

WeWork upended the commercial real estate industry and had a meteoric rise fueled by stellar growth and lofty ambitions. But poor management and lack of profitability finally brought down a quintessential startup unicorn valued at $47 billion at its peak. The dramatic saga serves as a cautionary tale for unproven, cash-burning companies and overzealous investors fueling their growth.

Information Services Group (III) – A Mixed Third Quarter but Optimism Remains

Posted on by [email protected]


Monday, November 06, 2023

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

A Miss but Record Quarter. Although revenue was below management’s guidance, it was still a record third quarter on a revenue basis. Business is not being lost, but clients are taking an extended approach to starting projects. We expect this situation to be short-term in nature.

Ventana. We are excited by the opportunities Ventana brings to ISG. In addition to adding to ISG’s recurring revenue stream, Ventana adds some 40 new clients in a new vertical for ISG. We believe there are significant synergistic and cross selling opportunities.


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. 

Information Services Group (III) – Reports Results and an Acquisition

Posted on by [email protected]


Friday, November 03, 2023

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

3Q Results. ISG reported third quarter revenue of $71.8 million, a record for the quarter, although lower than management’s $73-75 million guidance and our estimate of $75 million. Revenue was up 4.3% from last year’s $68.8 with currency translation positively impacting reported revenues by $1.4 million versus the prior year. Revenues from Americas were up 1% to $42.5 million from the prior year, Europe up 14% to $22.1 million, and Asia Pacific down 2% to $7.2 million. Recurring revenue was up 19% in the quarter.

Bottom Line. Net income for the quarter was $3.2 million, or diluted EPS of $0.06, down 42% from $5.6 million last year, or $0.11. We estimated net income of $3.8 million, or EPS of $0.08. Non-GAAP net income was $5.7 million, or diluted EPS of $0.11, compared to $7.2 million, or $0.14, last year. Adjusted EBITDA was $10.6 million, flat with last year, near the low-end of management’s $10.5-$11.5 million guidance.


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.