STOCKS TELEGRAPH

Tag: software

  • SolarWinds Corp. (SWI) Stock Plummets Following Announcement of Completion of Spin-Off Business

    SolarWinds Corp. (SWI) Stock Plummets Following Announcement of Completion of Spin-Off Business

    SolarWinds Corp. (SWI) stock prices were down by a massive 47.37% as of the market closing on July 19th, 2021, bringing the price per share down to USD$8.92 at the end of the trading day. Subsequent premarket fluctuations have seen the stock fall by another 37.00%, bringing it down to USD$10.66.

    Spin-Off Business

    July 20th, 2021 saw the company announce the completion of its previously announced spin-off of the SWI managed service provider (MSP) business into N-able, Inc., a standalone public company that is traded separately. With the completion of the transaction having taken place on July 19th, 2021, the newly listed spin-off company will facilitate the provision of cloud-based software solutions for managed service providers.

    Birth of N-able

    This, in turn, will allow the MSPs to support digital transformation and growth within small and medium-sized enterprises. While N-able will be listed on the New York Stock Exchange under the NABL ticker, SWI will retain control of its Core IT Management business, which will primarily focus on Providing IT infrastructure management software to corporate IT organizations.

    Financial Forecasts

    Following the company’s initial review of its financial performance for the second quarter of 2021, SWI anticipates reporting total revenue ranging from USD$260.8 million to USD$262 million. This forecast accounts of roughly 6% year-over-year growth, including the company’s Core IT Management revenue-generating USD$176 million to USD$177 million, representing a 2% year-over-year increase. GAAP net loss for the second quarter of 2021 is expected to be in the range of USD$10.4 million and USD$11.3 million.

    Private Placement Offering

    July 12th, 2021 saw the company announce having entered into a definitive agreement with various institutional accredited investors in regard to a private placement financing transaction. The transaction is expected to generate roughly USD$225 million before the deduction of expenses related to the offering. As per the agreement, the company will issue a total of 20,623,282 shares of its common stock, with each share being priced at USD$10.91. Having culminated on July 19th, 2021, N-able will diver the net proceeds generated from the offering to SolarWinds before the closing of the distribution. The capital generated is expected to be used in distribution to its stockholders, as well as to pay down existing third-party indebtedness.

    Future Outlook for SWI

    Armed with the influx of capital from the offering having resulted in a healthier balance sheet, SWI is poised to capitalize on the opportunities presented to it and its spin-off business. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate a continued trajectory of success for the company.

  • Stamps.com, Inc. (STMP) Stock Skyrockets Following Announcement of Acquisition by Thoma Bravo

    Stamps.com, Inc. (STMP) Stock Skyrockets Following Announcement of Acquisition by Thoma Bravo

    Stamps.com, Inc. (STMP) stock prices were up by a marginal 0.36%, bringing it up to USD$197.72 as of the market closing on July 8th, 2021. Premarket fluctuations saw the stock skyrocket by 63.55%, bringing it up to USD$323.38.

    Merger with Thoma Bravo

    July 9th, 2021 saw the company announce that it had entered into a definitive agreement that would see it being acquired by the leading software investment firm, Thoma Bravo. As per the agreement, the transaction will be conducted entirely in cash, with STMP being valued at roughly USD$6.6 billion.

    Details of the Merger

    Stockholders of the company will receive USD$330 per share in cash, which represents an impressive 67% premium over the company’s closing share price on July 8th 2021. The premium represents a 71% increase from the company’s volume-weighted average closing share price over the three-month period ended July 8th, 2021.

    Expanded Scope of STMP

    Upon the closing of the transaction, STMP will become a private company with the added resources and increased flexibility to ensure the continued provision of best-in-class global e-commerce technology solutions. Furthermore, the company will benefit from the operating capabilities, capital support, and deep sector expertise of its partner.

    Go-Shop Option

    The agreement includes a 40-day period that will expire on August 18th, 2021, wherein the company is allowed to actively initiate, solicit, and consider alternative acquisition proposals from third parties. Should this be exercised, the Board will have the right to void the merger agreement in favor of entering a superior proposal. The transaction is expected to close in the third quarter of 2021, pending customary closing conditions, including, but not limited to stockholder approval and the receipt of regulatory approvals.

    Benefits of the Merger

    With the expanded financial and operational resources generated from the merger agreement, the company can continue capitalizing on more and more growth opportunities. STMP hopes to maximize market penetration in the e-commerce shipping market, while consolidating its position as a leader in global multi-carrier e-commerce shipping software. This position of leadership is evidenced by the company being the first of its kind to introduce online postage, as well as its having been an early innovator in e-commerce shipping software.

    Future Outlook for STMP

    Armed with the expansive potential of its pending merger with Thoma Bravo, STMP is poised to capitalize on the opportunities afforded to it in light of the combined pool of resources available to it. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to sustain the successful trajectory of growth over the long term.

  • ZW Data Action Technologies, Inc. (CNET) Stock Exhibits Volatility After Having Been Selected as Latest Meme Stock

    ZW Data Action Technologies, Inc. (CNET) stock prices were up by 6.50% as of the market closing on July 1st, 2021, bringing the price per share up to USD$2.13 at the end of the trading day. After-hours trading saw the stock plummet by 7.04%, bringing it down to USD$1.98.

    Revenue Reports

    Revenues for the quarter ended March 31st, 2021 were reported at USD$8.40 million, a 91.5% increase from the USD$4.38 reported in the same quarter of the prior year. The year-over-year difference is largely attributable to increases in revenue from the company’s internet advertising and related service business segment. This, in turn, has benefitted from the economic recovery since the Covid-19 outbreak in the second half of the prior year.

    Costs of Revenues

    Q1 2021 total cost of revenues came out to USD$9.11 million for the quarter ended March 31st, 2021, up a massive 161.5% from the USD$3.49 million reported for Q1 2020. The year-over-year difference was largely driven by increases in cost derived from the distribution of the right to use search engine marketing services that CNET had previously purchased from key search engines. Further contributing to the yearly difference were costs related to the provision of Internet advertising services with various ad portals.

    Gross Loss and Margins

    Gross loss for the quarter ended March 31st, 2021 was reported at USD$0.72 million down from the gross profit of USD$0.90 reported in the same period of the prior year. This difference over the year is primarily attributable to the negative gross margin rate resulting from the main stream of service revenues. Accordingly, the gross loss margin was 8.5% for the quarter, while the prior-year quarter reported a gross profit margin of 20.5%.

    Meme Stock Phenomenon

    With no recent news coverage since the end of May 2021 and no significant changes in fundamentals, CNET seems to have found itself to be the target of the meme stock phenomenon that has resurged through the markets lately. After the massive volatility around the end of June 29th, 2021, CNET stock continues to dip and rally in significant swings. Driven by retail investors who coordinate on the social media platform Reddit to execute a collaborative short squeeze of underperforming companies with little to no sound bases for being invested in, meme stocks have been all the rage lately.

    Future Outlook for CNET

    Armed with the fortuitous strengthening of the position of its equity value, CNET is poised to capitalize on the opportunities presented to it in a bid to usher in more organic growth. Investors are hopeful that management will be able to keep the snowball going rather than a massive downward correction, as is seen very often with meme stocks.

  • Bridgeline Digital, Inc. (BLIN) Stock Skyrockets as Latest Target of Meme Stock Phenomenon

    Bridgeline Digital, Inc. (BLIN) stock prices were up by a massive 26.84% as of the market closing on June 30th, 2021, bringing the price per share up to USD$4.30 at the end of the trading day. Subsequent pre-market fluctuations have seen the stock rise by 25.58%, bringing it up to USD$5.40.

    Unbound CMS Contract

    June 22nd 2021 saw the company announced the signing of a long-term contract of Unbound CMS with one of the largest haircutting franchises in the U.S. With more than 1800 locations across the U.S., the customer has been a long term client with Unbound CMS since 2021, when their corporate site was designed and built by the Unbound Team. Over the years, Unbound integrated store locators and developed franchisee local sites, with each Unbound-powered franchise site having its own unique URL with webpages for each location.

    Unbound Merits

    The company made moves recently to consolidate the network of franchises under the main domain, hoping to streamline the overall digital experience, while also reducing costs over the long term. After market research into evaluating CMS options, Unbound was recognized as the most appropriate solution for the project. As per a key part of the closing of this franchise-specific renewal deal, Unbound will facilitate the provision of a powerful Local Pages solution. The contract to develop and implement the new digital strategy is set to last 36 months.

    Q2 2021 Financial Reports

    Total revenue for the second quarter of fiscal 2021, ended March 31st 2021, was reported at USD$2.9 million, up from the USD$2.7 million reported for the prior year period. With total revenue consisting of Licenses and Services revenue, the former exhibited 8% growth, while the latter grew by 2%. Gross profits were also up, by 16% up to USD$1.8 million for the quarter ended March 31st 2021, comparable to the USD$1.6 million reported in the prior year period.

    Meme Stock Phenomenon

    Despite these promising developments over the quarter, there has been no news coverage or change in the fundamentals of BLIN to justify the meteoric rise it has seen lately. It seems very likely that the company is fortuitously finding itself to be the next target of the meme stock phenomenon that has been taking over stock markets as of late. Driven by retail investors who use the social media platform Reddit, this phenomenon sees underperforming stocks with high short interests get pumped by a coordinated short squeeze.

    Future Outlook for BLIN

    Despite being rife with volatility on the basis of there not being sound reasons to invest in a company based on its merit, the activity affords BLIN extensive opportunities as it sees its equity value skyrocket. Investors are hopeful that the company will make moves to maintain the momentum generated by the Reddit-driven investor community.

  • AeroVironment, Inc. (AVAV) Stock Continues Downward Trend Following Disclosure of Q4 2021 Financial Report

    AeroVironment, Inc. (AVAV) Stock Continues Downward Trend Following Disclosure of Q4 2021 Financial Report

    AeroVironment, Inc. (AVAV) stock prices were down by 0.76% as of the market closing on June 29th, 2021, bringing the price per share down to USD$109.87 at the end of the trading day. After hours trading  saw the stock dip by another 4.43%, bringing it up to USD$105.00.

    Revenue Reports

    The company reported revenues for the fourth quarter of fiscal 2021 amounting to USD$136 million, up from the USD$135.2 million reported for the same time period of the prior fiscal year. The difference is largely attributable to a USD$15.8 million increase in revenue of the company’s Medium Unmanned Aircraft Systems (MUAS), as a result of the acquisition of Arcturus UAV in February of 2021.

    Partial Offsetting of Revenue

    The year-over-year increase in revenue was offset by a USD$15 million decrease in revenue of AVAV’s Unmanned Aircraft Systems (UAS) segment. This, in turn, was a result of a USD$14.2 million reduction in service revenue, as well as a decrease in product sales amounting to USD$0.8 million. The UAS segment consists of s the company’s existing small UAS, tactical missile systems and HAPS product lines, as well as the recently acquired Progeny Systems Corp’s Intelligent Systems Group (ISG).

    Gross Margins

    Gross margin for the fourth quarter of fiscal 2021 was reported at USD$59.7 million, up 12% from the USD$ 53.2 million reported for the prior year quarter. This difference was largely driven by a USD$8.8 million increase in product margin, while being partially offset by a USD$2.3 million reduction in service margin. Gross margins as a percentage increased fomr 39% to 44% over the course of the time period. This increase was primarily attributable to a favorable product and services mix.

    Income from Operations

    Q4 2021 income from operations was reported at USD$17.8 million, a USD$3.5 million decrease from the USD$21.3 million reported for Q4 2020. This difference is primarily driven by an increase in SG&A expenses in the amount of USD$8.5 million, as well as R&D costs having increased by USD$1.5 million. These increases were partially offset by a USD$6.5 million increase in gross margin. The increase in SG&A expenses was largely due to USD$3.3 million in acquisition-related expenses associated with the acquisitions of Arcturus UAV, ISG, and Telerob GmbH.

    Future Outlook for AVAV

    Armed with its recent string of potentially massively beneficial acquisitions, AVAV is poised to capitalize on the opportunities afforded to it as a result of its collaborations. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Powerbridge Technologies Co., Ltd. (PBTS) Stock Skyrockets as Latest Possible Target of Meme Stock Phenomenon

    Powerbridge Technologies Co., Ltd. (PBTS) Stock Skyrockets as Latest Possible Target of Meme Stock Phenomenon

    Powerbridge Technologies Co., Ltd.(PBTS) stock prices were up by a massive 100% as of the market closing on June 29th, 2021, bringing the price per share up to USD$2.86 at the end of the trading day. After hours trading saw the stock surge by another 30.42%, bringing it up to USD$3.73.

    Partnership with Huawei

    April 14th, 2021 saw the company announce its Strategic Cooperation Agreement with Huawei Technologies to collaboratively promote and market their services to local Chinese ports and customs. The agreement will be the framework on which their vision use innovative technologies such as Blockchain, Cloud Computing, Artificial Intelligence, and Internet of Thing in the global trade industry application. The parties also plan to leverage their joint advantage to collaboratively market their product and services to their target demographics.

    Details of the Agreement

    The agreement will also aim to seek a deeper collaboration in the interest of facilitating the provision of better digital transformation solutions in the global trade industry, as well as expanding the companies’ marketing influence both domestically and internationally. As per the agreement, the companies will promote the construction of Smart Ports while upgrading and accelerating its construction. Furthermore, the partnership will seek to create innovative solutions for Smart Bonded Zone.

    Expanded Scope of PBTS

    With Huawei’s advantage in market resources and PBTS’ expertise in global trade digital solutions, the two are committed to jointly building a new global trade ecosystem in China by leveraging their pooled resources. The partnership is expected to result in the promotion of more digital upgrades, as well as innovative solutions for Chinese custom, ports, and special bonded zone.Concurrent with the announcement of the partnership, PBTS launched its innovative Smart Port and Smart Customs products.

    Meme Stock Phenomenon

    While hugely impactful, the collaboration does not merit the overnight doubling of PBTS’s equity value. With no recent news coverage or changes in fundamentals, it is likely that PBTS has found itself to be the latest target of the meme stock phenomenon that has been resurged in stock markets. Rife with volatility and inherent risk, meme stocks are pumped by retail investors that coordinate a short squeeze on underperforming stocks. These stocks have little to no reason to be invested in, therefore entailing massive volatility and uncertainty.

    Future Outlook for PBTS

    Armed with its fortuitous surge in stock price, PBTS is poised to capitalize on its partnership with Huawei. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.