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Actual news slows down over 106 degrees Fahrenheit? They seem to be the local white knights, tactically bouncing squatters and politely cleaning sidewalks 😂
https://www.fox5vegas.com/video/2024/03/07/what-private-security-teams-are-doing-las-vegas-address-squatters-vacant-apartments-evictions-rise/
https://www.ktnv.com/news/protective-force-international-helps-with-safety-security-concerns-in-downtown-las-vegas
sadly they've had their V100 since 2023. Not sure why they're marketing it again
Las Vegas private security company uses virtual reality training tool
https://www.fox5vegas.com/2024/06/25/las-vegas-private-security-company-uses-virtual-reality-training-tool/
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At this point a poor Q2 is priced in. However, a terrible Q2 is not. What’s poor? What’s terrible? 7.x million revenue is poor, 6.x million or less is terrible. But but but, Q2 will not matter at all IF order intake during Q2 was great and/or IF they guide Q3 and Q4 to record levels.
Dipped the toe back in to begin building the trading portion of the position again. Got filled for a single Aug $5c at 2.80 I am still pretty worried about Q2 though so will be cautious even at this level.
November strikes are so tricky because it is not certain you'll get the second earnings report or not with the 11/15 expiry.
And FWIW the grant I was tracking that got messed up by continuing resolution has been paid to the prime now so the payments are flowing.
I am waiting to see how low it might go to lower my per share investment. I always believed in the company and still do. We are long for sure.
Anyone who says they trade perfect is a liar. I sold too early in the recent rise as well, likely at a lower avg price than you. I was completely out of the stock going into earnings but then bought a few at $17 on day of earnings cuz I wanted to play along just in case it skyrocketed. I do continue buying on the way down, today in the $7.60s but my current avg price is much higher. Current position is still small but I hope to be in pretty big by early August.
The nice thing is that with Givens at the helm it will work out well over next couple years.
What is frustrating is that I owned since 2006 and sold at 13.50 my position. Saw it rise higher and cried but then bought back in on the slide at 11.25, and I cry now for different reasons.
It’s both exciting and depressing to be buying VTSI shares today a full $10 below the 52week high…..but it is par for this course. If it pops late next week I will sell and buy back when the Russell rah rah wears off in July.
Cool! Who sold me shares yesterday?
Stock market on fire. Nasdaq at an all time high. And we drip drip drip red every day
Fish is right. He has plenty of time to buy. I'll sell to him at 11 after August earnings and at 14 after November earnings.
Respectfully disagree, may be true of widgets, not intricate high tech. Tell Nvidia that. they spent 20 years getting ahead of the curve and becoming the be all of AI.... when you have government purchasers, you HAVE to justify NOT going best of breed. I have experienced this first hand over the last 25 years, it's not like it used to be. my cousins friend is a vendor so I'll buy from him, rarely happens anymore
What leads to sales you ask? The best salesmen. Period. It has little to do with technology or best of breed product. Those things help but a great salesman can sell ice to Eskimos.
The Russell an achievement? No it’s not. The inclusion is based on one thing and only one thing, the market cap of the company. Had Q1 been announced a few weeks earlier they would not have made it.
All that said, VTSI stock has held up well of late, perhaps the bottom is in.
Discerning eyes can see Fish.... what do you think ultimately leads to sales??? Superior tech and being certified by BEST OF THE BEST AGENCIES that other govt and municipal agencies rely on to do the research!!! You guys are one trick ponies...
And whether you think it or not, getting on the Russell IS an achievement, and if not announced, very few would be aware of it including some on this board. And knowing that index funds are going to have to be holding approx 10% of the float is very important to investors and potential investors.
Another fluff pr, similar to the Russell pr. Where is some concrete news about Sales?
Imagine the sales losers instead...!
$ 8.09
Just imagine if the study participants had the threat fire belt on and got real time feedback if they missed! At some point I have to learn to take a profit with my investment in this company. But I’m greedy….
ORIGINAL RESEARCH The VirTra V-100 Is a Test-Retest Reliable Shooting Simulator for Measuring Accuracy/Precision, Decision-Making, and Reaction Time in Civilians, Police/SWAT, and Military Personnel
https://journals.lww.com/nsca-jscr/abstract/9900/the_virtra_v_100_is_a_test_retest_reliable.457.aspx
Virtual reality as a reliable shooting performance-tracking tool
Study tests ballistic simulator measures of precision, decision-making, reaction time
Emily Caldwell
Ohio State News
https://news.osu.edu/virtual-reality-as-a-reliable-shooting-performance-tracking-tool/
Virtual reality technology can do more than teach weaponry skills in law enforcement and military personnel, a new study suggests: It can accurately record shooting performance and reliably track individuals’ progress over time.
In the study of 30 people with a range of experience levels in handling a rifle, researchers at The Ohio State University found that a ballistic simulator captured data on the shooters’ accuracy, decision-making and reaction time – down to the millimeter in distance and millisecond in time – on a consistent basis.
In addition to confirming that the simulator – called the VirTra V-100 – is a dependable research tool, the findings could lead to establishing the first-ever standardized performance scores for virtual reality ballistics training.
“To our knowledge, we’re the first team to answer the question of whether the simulator could be converted to an assessment tool and if it’s credible to use it day-to-day,” said Alex Buga, first author of the study and a PhD student in kinesiology at Ohio State.
“We’ve figured out how to export the data and interpret it. We’ve focused on the three big challenges of marksmanship, decision-making and reaction time to measure 21 relevant variables – allowing us to put a report in a user’s hand and say, ‘This is how accurate, precise, focused and fast you are.’”
The study was published online June 6 in The Journal of Strength and Conditioning Research.
U.S. military leaders and law enforcement agencies have shown an interest in increasing the use of virtual reality for performance assessment, said Buga and senior study author Jeff Volek, professor of human sciences at Ohio State. Earlier this year, an Ohio Attorney General Task Force on the Future of Police Training in Ohio recommended incorporating virtual reality technology into training protocols.
Volek is the principal investigator on a $10 million U.S. Department of Defense grant focused on improving the health of military service members, veterans and the American public. As part of that initiative, the research team is investigating the extent to which nutritional ketosis reduces detrimental effects of sleep loss on cognitive and physical performance in ROTC cadets – including their shooting ability as measured by the VirTra simulator. Verifying the simulator’s results for research purposes triggered the attempt to extract and analyze its data.
“We were using it as an outcome variable for research, and we found that it has very good day-to-day reproducibility of performance, which is crucial for research,” Volek said. “You want a sensitive and reproducible outcome in your test where there’s not a lot of device or equipment variation.”
Because the lab also focuses on human performance in first responders, researchers’ conversations with military and law enforcement communities convinced Buga that data collected by the simulator could be more broadly useful.
“I created a few programs that enabled us to calculate the shooting data and produce objective training measures,” he said. “This equipment is close to what the military and police use every day, so this has potential to be used as a screening tool across the country.”
Users of the simulator operate the infrared-guided M4 rifle by shooting at a large screen onto which different digitally generated visuals are projected – no headset required. The rifle at Ohio State has been retrofitted to produce the same recoil as a police or military weapon.
The simulator user interface featured tasks assessing (L-R) marksmanship, decision-making and reaction time. Image: Alex Buga
The simulator user interface featured tasks assessing (L-R) marksmanship, decision-making and reaction time. Image: Alex Buga
The study participants included civilians, police and SWAT officers, and ROTC cadets. Each was first familiarized in a single learning session with the simulator and then completed multiple rounds of three different tasks in each of three study performance sessions.
In the first task, participants fired at the same target a total of 50 times to produce measures of shooting precision. The decision-making assessment involved shooting twice within two seconds at designated shapes and colors on a screen displaying multiple shape and color choices. In the reaction-time scenario, participants shot at a series of plates from left to right as rapidly as possible.
Internal consistency ratings showed the simulator generated good to excellent test-retest agreement on the 21 variables measured.
All participants were well-rested and completed the study sessions at about the same time of day. Self-evaluations showed that participants’ overall confidence about their shooting performance increased from their first to final sessions. They also rated the simulator as a realistic and a low-stress shooting assessment tool.
The low stress and well-rested conditions were important to establishing baseline performance measures, the researchers noted, which then would enable evaluating how injuries and other physical demands of first-responder professions affect shooting performance.
“This simulator could be used to assess the effectiveness of specific training programs designed to improve shooting performance, or to evaluate marksmanship in response to various stressors encountered by the same law enforcement and military personnel,” Buga said. “These novel lines of evidence have enabled us to push the boundaries of tactical research and set the groundwork for using virtual reality in sophisticated training scenarios that support national defense goals.”
Additional co-authors, all from Ohio State, included Drew Decker, Bradley Robinson, Christopher Crabtree, Justen Stoner, Lucas Arce, Xavier El-Shazly, Madison Kackley, Teryn Sapper, John Paul Anders and William Kraemer.
Nice announcement and certification! I think at some point in near future we will look back at this and say" Remember when that got announced? They were telegraphing this big federal contract"
The implications are huge... simulated shooting with PRECISION, ACCURATE, VERIFIABLE, TRACKING AND RESULTS. just from a shooting improvement standpoint, without having to use real ammo AND being able to get comparable reporting over time for individuals in basically real time is huge. And then put in all the scenario reaction analysis... Wow!!!!
VirTra Simulators Approved for DoD-Funded Research Projects
CHANDLER, Ariz. — June 13, 2024 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators and firearms training simulators for the law enforcement and military markets, today announced that its simulators have been approved for Department of Defense (“DoD”) funding for research projects. This approval is supported by the results of a recent independent research study conducted by Ohio State University.
The study, published by a third party, assessed VirTra’s V-100 Simulator and confirmed that VirTra simulators can record shooting performance accurately and track individual progress over time reliably, thereby qualifying them as verified and consistent research tools.
Researchers at Ohio State University studied 30 participants with varying degrees of rifle-handling experience to evaluate the V-100 Ballistic Simulator’s capabilities as a training device and research tool. They found that the system accurately captured shooting data, decision-making, and reaction time down to millimeters and milliseconds. These significant findings support the use of VirTra’s simulators as research tools and could lead to their use in a first-ever standardized performance score system for virtual reality ballistics training.
“Our research group used the V-100 Ballistic Simulator as an outcome variable for our study and found that it has excellent day-to-day reproducibility of performance, which is crucial for research,” said Jeff Volek, professor of human sciences at Ohio State. “A sensitive and reproducible outcome is essential in tests where equipment variation must be minimized. Alex Buga from my research team created several programs that enabled us to calculate shooting data and produce objective training measures. VirTra’s equipment closely simulates what the military and police use daily, indicating its potential as a screening tool across the country.”
VirTra simulators, now qualified as research tools, assist in the collection, processing, analysis, and interpretation of data across various disciplines, including natural sciences, social sciences, and military sciences. The key characteristics that make VirTra simulators invaluable for research include their accuracy and precision, efficient data management, advanced analytical capabilities, reproducibility, user-friendly interface, integration with other systems, robust security features, and comprehensive support and documentation.
The study’s findings corroborate the research industry’s steady adoption of VirTra simulators for investigative purposes. Top-level investigators, such as Force Science, already use VirTra simulators to conduct human performance under stress research.
“At Force Science, we are involved in many of the United States’ most high-profile use-of-force investigations, where we are required to research, analyze, and demonstrate the reality of human performance under stress,” said Von Kliem, Chief Consulting and Communications Officer at Force Science. “With VirTra simulators, we can swiftly and securely recreate dynamic force encounters. Their precision technology allows us to measure movement times, shot times, and response intervals with the consistency and accuracy necessary for valid and reliable research. The validity of research conducted with VirTra systems enables us to study diverse populations and establish realistic expectations for human performance during threat assessments, decision-making, and critical de-escalation efforts.”
The research study conducted by Ohio State University was published on June 6, 2024, in The Journal of Strength and Conditioning Research.
Today, Virtra posted on X and instagram that federal grants (how much?) are available again, meaning the federal gov is releasing the funds that were promised in March.
Ref to this article on the Virtra website:
https://www.virtra.com/new-and-upcoming-grant-opportunities-blog/
Chart is ugly.
Valuation is ok.
I bought some in the 10s, 9s, 8s, and next week likely 7s. The lower it goes, the more I buy.
Really ugly market for all small company stocks right now so VTSI has lots of company in the ugly chart dept.
I am surprised Givens and a director or two haven’t stepped up and made some open market buys. Q2 might be really fugly.
Getting somewhat close to rebuying some but the other part of me says why go before q2. My reference point is the big dod grant I worked with at my job is still kind of backlogged.
Through new technology, police are training to react to life-threatening situations
June 03, 2024
https://www.post-gazette.com/news/crime-courts/2024/06/03/firearms-simulator-virtra-sheriffs-office-allegheny-county-police/stories/202406030068
Enterprise training is key for the Army to train as it fights
The Army’s next training systems contract, called Warfighter Training Readiness Solution, adds enterprise training for multi-domain operations.
From TADSS to W-TRS
The Army’s focus on doing just that to develop full-spectrum capabilities in MDO will take a step forward in the near future with a new program called Warfighter Training Readiness Solutions (W-TRS). This contract is an expansion and recompete of PEO STRI’s Training Aids, Devices, Simulators and Simulations (TADSS) operations and maintenance program – a seven-year contract that began in 2019.
The scope of TADSS expands under W-TRS to include enterprise training-related services for live, virtual, constructive capabilities, along with worldwide integrated training systems maintenance and sustainment for all Army TADSS, instrumentation systems, ranges, and Synthetic Training Environment equipment.
Microsoft says it will funnel more resources into Army’s IVAS program amid mixed reality shakeup
The company announced a new round of layoffs on Monday and said the affected jobs primarily revolve around engineering development for enterprise and commercial.
“Remaining resources,” the spokesperson added, are “being redirected to IVAS development,” though the company is also planning to send some resources toward cloud and artificial intelligence capabilities for mixed reality, and focus on the development of “ruggedized” HoloLens 2 devices for the public sector (i.e., federal, state and local first responders).
Backlog at end of Q1 was 14.4M. There were delays and softness in Q1 orders that were implied for a soft Q2 as well, but this is still a very decent backlog. NEW sales in Q2 will be very telling…
Fish said "I'll bite" 😂
Hey Sharp, just a feeling, or did you find some info? Always appreciated
Ok, I’ll bite….why?
I'd hold off getting in if i were you
Agree with all you said. Good advice. In some ways it’s an easy stock to analyze…2 years from now it will be higher and 5 years from now much much higher or perhaps swallowed by a bigger company.
But over the next few months it is a bit of a crap shoot and the Russell inclusion adds to the volatility.
I cannot believe they issued the PR this morning. That was stupid, reeks of desperation “look at me”. I took advantage and doubled my still small position today.
Agreed if stock price is based on earnings alone, but I tend to think it will more likely be positively impacted by press releases and significant events first. They have enough sticks in the fire for flare-ups due to high-value announcements, and consistent volumes that show more attention and eyes on VTSI than ever before. Time will tell, and after nearly 25 years of waiting I continue to be confidently patient.
Opinions?….If VirTra were to announce a $5.x mil revenue Q2 in mid August, where would the stock trade? Maybe that is the wrong question….Where will it trade over next 3 weeks? Will Q3 revenue be $12mil?
I want to scale back in but still think it goes well below $7.
VirTra Set to Join Russell 3000® Index
Source: GlobeNewswire Inc.?
VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement and military markets, is set to join the broad-market Russell 3000® Index at the conclusion of the 2024 Russell indexes annual reconstitution, effective after the US market opens on July 1, according to a preliminary list of additions posted last month.
Annual Russell indexes reconstitution captures the 4,000 largest US stocks as of April 30, ranking them by total market capitalization. Membership in the US all-cap Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000® Index or small-cap Russell 2000® Index as well as the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings, and style attributes.
“VirTra’s inclusion in the Russell 3000® validates our strategic progress and highlights our forward trajectory as a leader in effective training solutions for law enforcement and military applications,” said CEO John Givens. “Over the past year, we’ve significantly enhanced our operational capabilities and continued to innovate to meet the growing demand in these markets. We expect our inclusion in this respected index to bring increased exposure to the broader investment community as we work to deliver long-term value to our shareholders.”
Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. Russell’s US indexes serve as the benchmark for about $10.5 trillion in assets as of the close of December 2023. Russell indexes are part of FTSE Russell, a leading global index provider.
For more information on the Russell 3000® Index and the Russell indexes reconstitution, please visit the “Russell Reconstitution” section on the FTSE Russell website.
About VirTra Inc.
VirTra (Nasdaq: VTSI) is a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.
About FTSE Russell
FTSE Russell is a leading global provider of benchmarking, analytics, and data solutions for investors, giving them a precise view of the market relevant to their investment process. A comprehensive range of reliable and accurate indexes provides investors worldwide with the tools they require to measure and benchmark markets across asset classes, styles, or strategies.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products, and index-based derivatives. ???????
FTSE Russell is focused on applying the highest industry standards in index design and governance, employing transparent rules-based methodology informed by independent committees of leading market participants. FTSE Russell fully embraces the IOSCO Principles, and its Statement of Compliance has received independent assurance. Index innovation is driven by client needs and customer partnerships, allowing FTSE Russell to continually enhance the breadth, depth and reach of its offering.
FTSE Russell is wholly owned by London Stock Exchange Group.
For more information, visit https://www.lseg.com/en/ftse-russell.
Forward-Looking Statements
The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “will,” “should,” “could,” “predict,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risks and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
Investor Contact:
Matt Glover and Alec Wilson
Gateway Group, Inc.
949-574-3860
VTSI@gateway-grp.com
New North Charleston Police Department training center simulates split-second decision scenarios
May 28th, 2024
https://www.postandcourier.com/news/north-charleston-police-training-center/article_29b101ee-147b-11ef-8461-a34c65d5135b.html
Shareholders Unite - Buy Alert VirTra
19.66K Followers
May 28, 2024 8:19 AM ET VirTra, Inc. (VTSI)
We're buying another $10K trading position in VirTra (VTSI) at $10.91 see the most recent article as well as making a surprise entry into the Russell 2000. ...
https://seekingalpha.com/mp/1359-shu-growth-portfolio/articles/6020424-buy-alert-virtra
Awesome! That's gonna be good for the pps!😁
Virtra has been added to the Russell 3000 index
Price Target and Rating
Average Stock Price Target $17.50
High Stock Price Target $19.00
Low Stock Price Target $16.00
Potential Upside/Downside +79.3%
Consensus Rating Buy
Rating Score (0-4)3.00
Research Coverage 2 Analysts
Profitability
EPS (Most Recent Fiscal Year) $0.60
Trailing P/E Ratio 16.27
Forward P/E Ratio 13.75
P/E Growth 1.39
Net Income $8.40 million
Net Margins 18.48%
Pretax Margin 23.16%
Return on Equity 16.25%
Return on Assets 9.74%
Debt
Debt-to-Equity Ratio 0.18
Current Ratio 3.31
Quick Ratio 2.46
Sales & Book Value
Annual Sales $38.04 million
Price / Sales 2.85
Cash Flow $0.88 per share
Price / Cash Flow 11.13
Book Value $3.96 per share
Price / Book 2.46
Miscellaneous
Outstanding Shares11,110,000
Free Float 10,532,000
Market Cap $108.43 million
Optionable Optionable
Beta 0.72
https://www.marketbeat.com/stocks/NASDAQ/VTSI/
Thanks, Joe!
VirTra, Inc. (NASDAQ:VTSI - Free Report) - Equities research analysts at Roth Capital lowered their Q2 2024 earnings estimates for shares of VirTra in a report issued on Wednesday, May 15th. Roth Capital analyst R. Baldry now anticipates that the company will post earnings per share of $0.10 for the quarter, down from their prior estimate of $0.22. The consensus estimate for VirTra's current full-year earnings is $0.86 per share. Roth Capital also issued estimates for VirTra's FY2024 earnings at $0.71 EPS.
VirTra: Short-Term Hiccup Or Long-Term Troubles?
May 15, 2024 2:45 PM ETVirTra, Inc. (VTSI) Stock19 Comments
Diesel profile picture
Diesel
2.99K Followers
Summary
VirTra's quarterly earnings missed estimates, causing VTSI stock to drop 30% overnight.
VirTra's revenues dropped almost 20% year-over-year, with operating expenses increasing, putting pressure on net income. Cash flow rose, but it was due to the company working through its backlog.
Most of the revenue decline actually came from international markets where pipeline is still growing, but contract lead times are longer.
It's too early to tell whether this is a short-term trouble or a sign of something bigger. The next couple of quarters will tell us.
Practicing at the Shooting Range
RichLegg/E+ via Getty Images
VirTra Q1 Earnings Results
VirTra, Inc. (NASDAQ:VTSI) announced its quarterly earnings this week, and investors weren't thrilled with the results as the company missed estimates both on the top line and bottom lines. This caused the stock to drop about 30% overnight. Analysts were looking for the company to report 12 cents of net income on revenues of $8.5 million, whereas the company delivered net income of 11 cents per share on revenues of $8.1 million. The stock was having a good run this year before this latest drop, and it's still up more than 100% year-over-year despite this sharp drop.
Chart
Data by YCharts
I originally covered this stock in an article titled "VirTra: Still Offers Value Despite Recent Rally," and this article serves as an update on that one. In the original article, I argued that the company's growth story was impressive, and its valuation was still attractive despite having had a strong rally up to that point. Since then, the stock became more expensive as it rallied another 80% or so (until today's 30% drop) and the company's growth story seems to have hit a speed bump as it reported a decline of almost 20% in revenues.
The big question is whether this is a short-term trouble or a serious reversal of a long-term trend. If the first is true, it would mean we are looking at a nice panic-driven buying opportunity, but if the second scenario is true, this could be the end of this stock's appeal for the bulls.
One bad quarter rarely breaks a company, but it can also signal that things might be about to change if it shows some signs of long-term trouble. The most troubling part of the latest report is that it shows revenues down almost 20% year over year, while operating expenses are actually higher. The company's total revenues dropped from $10 million to $8.1 million whereas its operating costs rose from $3.48 million to $4.06 million, which put a pressure on net income which dropped by more than half from 27 cents to 11 cents.
The interesting thing was that the company's gross margins barely moved from 69% to 67% even with its revenues dropping so sharply. The company's general and administrative costs rose from 27% of its revenues to 42% of revenues, which is a pretty large increase. This is probably why profits dropped even faster than revenues did, while gross margins actually stayed stable.
Income Statement
Income Statement (VirTra )
VirTra used to enjoy a pretty large backlog before this quarter, which allowed it to have visibility and consistency in its revenue growth path, but the backlog seems to have shrunk during the quarter. As of this quarter, the company's backlog size is down from $20 million to $14 million, which includes $5.4 million in capital, $6.4 million in service and warranties and $2.2 million in other contracts so not all of this backlog is product orders. Some of it actually relates to long-term warranty and service contracts. The company received only $2.9 million of new orders into its backlog during the quarter, which could have been a lot better.
Most of the revenue decline from last year actually came from international markets. The U.S. government market was mostly flat year over year between last year and this year ($6.72 million vs $6.75 million this year) whereas international market revenues were down from $3.2 million to $1.3 million, down about 1.8 million. Considering that the company's total revenues were down by about 2 million, most of this was accounted by international sales. The company actually said that its international pipelines are growing, but it's taking longer to finalize those contracts since sales cycles tend to be longer in international markets, but eventually, growth should return to these markets. Since revenues are not recognized until a product is delivered and signed off on, it makes sense for longer pipeline timelines to impact this company's revenues, but if this trend continues it may signal troubles in the future.
Market Segments
Market Segments (VirTra )
On a positive note, the company's operating cash flow was up significantly from the same quarter a year ago. It was mostly accounted by one line item (Accounts Receivable net) which rose from negative $1.6 million to positive $5.2 million, which gave the company a positive operating cash flow of $5.1 million, up significantly from less than $1 million from a year ago. This is partially because the company has been working through its existing backlog during the quarter. Notice that this amount is very similar to how much the company's backlog dropped during the quarter (close to $6 million).
Cash Flows
Cash Flows (VirTra )
The company seems to be facing some challenges and uncertainty regarding government contracting both in domestic and international markets as many governments around the world are trying to keep their costs under control and having budgeting troubles. The company will have to ramp up its marketing efforts to show its product line's value to its customers so that it can continue to win contracts from both local and international customers.
VirTra is also trying to bring new products to the market such as V-XR which will take a while to generate revenues, but the company appears to be very confident about its long-term trajectory. There seems to be still a lot of interest from law enforcement agencies about obtaining this company's products, but the big question is whether they will be able to get the budget for it. Currently, there is a lot of pressure from local governments to better train their law enforcement agents, so I could imagine them allocating more resources for this eventually, even though there might be short-term headwinds.
Throughout last year, analysts kept upgrading their estimates for this company. A year ago, analysts were expecting the company to generate 21 cents per share in 2024 which was upgraded to 49 cents, 71 cents and 80 cents. This also allowed the stock to rally significantly during this period. It is likely that these estimates will be coming down in the next few weeks and months, but 2025 estimates will also be important.
Analyst Estimates
Analyst Estimates (Seeking Alpha)
I could see this year's estimate to be slashed from 80 cents to 50 cents and next year's from 90 cents to 70 cents in light of the current quarter's results. If this holds up, the current post crash price of $10.80 would indicate a forward P/E of 21 based on 2024 earnings and 15 based on 2025 estimates. The big question is whether the company can return to growth. If it can return to growth, those valuations are not bad, but if revenues and profits continue to shrink, then a lower multiple may be warranted.
It's too early to tell whether this quarter's weak results from VirTra were just a one-off quarter or part of a long-term reversal. During the earnings call, the company's management seemed confident that they will be able to return to growth shortly, but they didn't provide a specific guidance. I believe even the company's management has limited visibility currently since they are at the mercy of government contracts, which can take a long time to negotiate and finalize at times. The company said that it's streamlining its marketing process and changing how it sells products to reduce some of this uncertainty, but I can imagine that the results of these efforts won't be visible for at least a year or so.
Conclusion
What should investors do with this? I think if they are confident that the company's long-term story is intact, they can stay invested and possibly even add on the dip. If they believe that this quarter actually changed the company's long-term growth trajectory entirely, maybe it's time to move on to greener pastures. I can understand both approaches because things are a little more uncertain right now as compared to a few months ago regarding this company. I'd like to be more optimistic than cautious, but I don't blame you if you are not as optimistic
VirTra Simulated Training: A Closer Look
May 16, 2024
Intense—immersive—realistic.
VirTra training can put you into dicey situations that result in lethal force, or not. The Utah Attorney General’s Office is proud to employ VIRTRA training. It is realistic training with situations police officers face daily, which are not easy.
It’s an exciting tool that uses giant screens, intense surround sound, and a real-but-disabled handgun. Different situations play out on the screens as the trainee, playing the part of a police officer, moves around and shouts commands—trying to diffuse what’s occurring without using their weapon.
Sometimes it works, and sometimes it doesn’t.
Join us on this Legally Speaking episode as we dive deeper into VirTra training with Will Fowlke, the Training Center Director for the Investigations Division.
Listen to the podcast here.
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COMPANY PROFILE: VirTra Systems, Inc. develops, sells, and supports use-of-force and marksmanship firearms training simulators in Arizona and internationally. Its products comprise V-300 simulator, a 300 degree wrap around screen for simulation training; V-180 simulator, a 180-degree screen for smaller spaces and budgets; V-100, a single-screen based simulator system; V-ST, a realistic single screen simulated shooting range simulator; and Top SME Content, a content supplied with its simulators. The company also offers V-Author, a software that allows users to create, edit, and train with content specific to agency objectives; Simulated Recoil, a range of realistic and reliable simulated recoil kits/weapons; and Threat-Fire, a return fire device that applies real-world stress on the trainees during simulation training. It serves law enforcement judgement use-of-force simulation training, military firearms simulation training, and civilian simulation shooting markets. The company sells its simulators and related products through a direct sales force and distribution partners. The company was formerly known as Ferris Productions, Inc. and changed its name to VirTra Systems, Inc. in April 2002. VirTra Systems, Inc. was founded in 1993 and is headquartered in Tempe, Arizona.
VIRTRA SYSTEMS WEBSITE: http://www.virtra.com/
VIRTRA SYSTEMS FACEBOOK: http://www.facebook.com/pages/Virtra-Systems-Inc/100717131887
VIRTRA SYSTEMS TWITTER: http://twitter.com/VirtraSystems
VIRTRA SYSTEMS YOUTUBE: http://www.youtube.com/user/VirtraSystems
Bob Ferris, CEO
VirTra Systems, Inc.
7970 S. Kyrene Rd.
Tempe, AZ 85284
telephone (480) 968-1488 x5014
telecopier (480) 968-1448 fax
bferris@virtra.com
Contract - Websites
https://www.usaspending.gov/#/keyword_search/virtra
https://buyandsell.gc.ca/procurement-data/search/site/virtra
https://www.tenders.gov.au/?event=public.advancedsearch.keyword&keyword=virtra
https://www.defense.gov/News/Contracts/
https://govtribe.com/vendor/virtra-systems-inc-tempe-az
https://www.fbo.gov/index?s=opportunity&mode=list&tab=list
http://www.peostri.army.mil/
ThreatFire Patent:
Click here
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