Value Microcaps Motherboard

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curlews, re EVOL

Stock actually traded near $11 after the Q3 report in early November. Yes bookings could have been better last quarter. But like every small software company, bookings can be lumpy. The trend is still higher imo. Their DSA business just continues to grow. Which is why I was so encouraged by this PR earlier this month, talking about record DSA activations in December:

http://finance.yahoo.com/news/evolving-systems-achieves-record-highs-120000016.html


The CEO was also pretty upbeat back in the Q3 earnings PR. The last sentence sounds particularly bullish:

"Our strong quarterly financial results were highlighted by 68% year-over-year Dynamic SIM Allocation™ (DSA) revenue growth," said Thad Dupper, Chairman and CEO. "Our DSA growth is a direct result of more carriers deploying our solution in production, as well as steady and strong increases in SIM card activation volumes, driven by the proliferation of connected devices. The impact of this trend is positive revenue and EBITDA results along with gross margins and operating margins that are near all-time highs. Through nine months of 2014, adjusted EBITDA of $6.8 million has eclipsed 2013's full year total of $6.3 million. Our year-to-date bookings highlights included a 40% increase in DSA license and services orders and an 18% increase in overall license and services orders. Given the market dynamics we are experiencing with DSA, we believe we are well positioned for continued growth for Q4 and into 2015."


The stock sure has been weak. So maybe Q4 results next month will be terrible. From what the company has said, I think it'll be at least decent. Maybe very good. Should be a favorable comp at least. The fat 5.1% dividend yield should offer downside support on a mediocre quarter.