AMI Research
NetMedicalXpressSolutions,Inc.
Comprehensive Update
Net Medical Xpress Solutions, Inc.
OTC: NMXS
Comprehensive Update
May 21, 2013
Rating: SPECULATIVE BUY
Closing Price 05/20/13 $0.11
Target Price $0.30
Original Target $0.12
Initiation November 27, 2012
52 week range $0.02 - $0.14
Fully Diluted Shares Outstanding 162M
Float 111M
Market Cap $18M
Inside ownership 35%
Average Trading Volume 239K
Assets (03/31/13) $1.04M
Liabilities (03/31/13) $856K
Long-term Debt to Cap. Nil
3-Year Net income CAGR 450%
Fiscal year-end Dec. 31
"NMXS Beats Our Revenue Estimate For 1Q:13, Remains
Profitable; Reiterate SPECULATIVE BUY Rating And $0.30 Target
NMXS grew the top-line 32% to $1.22 million
during 1Q:13 (from $0.923 million) in 1Q:12.
The company beat our revenue projection of
$1.11 million by 10%. NMXS' Services segment
(81% of 1Q:13 revenue) grew 20% to $0.979
million from $0.816 million during 1Q:12.
NMXS' Services segment provides medical
diagnostic radiology and cardiology reading
services. However, we continue to expect a
shift in NMXS' revenue mix and forecast the
company's highest margined and newest
division Specialist segment to grow at a CAGR
of 67% and be responsible for $2.7 million or
35% of revenue in 2015.
NMXS is now profitable and we expect
profitability to continue. NMXS' reported net
income of $0.053 million during 1Q:13,
reversing a $0.023 net loss in 1Q:13.
Management has been in on-going
communication with universities and other
potential alliances that can further enhance
NMXS' specialist program. These
conversations have been on going since 2010.
NMXS is also leveraging existing customer
relationships to capture additional hospitals. At
this juncture, management is open to acquiring
telemedicine businesses that NMXS can
leverage. Given the company's balance sheet,
we think NMXS would finance through equity or
a revenue share. We forecast net income to
grow at a 3-year CAGR of 450% and yield
$0.834 million in net income, or $0.01 per
share."
