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LOL.
This will be epic.
Anoter 3 years of having to wait for the promise of an UPLIST.
Pinksheets with RED FLAGS for Paid Promos.
I cant even make this stuff up.
GLTA & JMO
Pivot Technology Solutions, Inc. Reports Second Quarter 2018 Results, Declares Dividend
TORONTO, Aug. 14, 2018 /CNW/ - Pivot Technology Solutions, Inc. (TSX: PTG), ("Pivot"), a full-service information technology provider, today reported its financial results for the three and six months ended June 30, 2018 that demonstrate solid progress with its commercial transformation. All figures are in US dollars unless otherwise stated.
SECOND QUARTER OVERVIEW
Revenue was $381.3 million, down 4.8% from $400.7 million in Q2 2017
Product revenue lower by 6.2%
Service revenue higher by 7.5% including 21.9% growth in Pivot direct services
Gross profit was $40.6 million (10.6% margin), down 5.5% from $43.0 million (10.7% margin) in Q2 2017
Adjusted EBITDA1 was $5.1 million, compared to $7.3 million in Q2 2017
Net income attributable to shareholders was $0.2 million ($0.01 per share) compared to $2.0 million ($0.05 per share) in Q2 2017
FIRST HALF OVERVIEW
Revenue was $750.6 million, up 3.8% from $723.2 million in the first six months of 2017
Product revenue higher by 4.1%
Service revenue higher by 1.6% including 14.9% growth in Pivot direct services
Gross profit was $79.9 million, up 3.7% from $77.1 million a year ago
Gross profit margin was 10.6% compared to 10.7% a year ago
Adjusted EBITDA1 was $6.6 million, up 15.0% from $5.7 million a year ago
Net loss attributable to shareholders was $2.3 million (loss of $0.06 per share) compared to a net loss of $2.1 million (loss of $0.05 per share) a year ago
1 Non-IFRS Measure. See Non-IFRS Measures section of this news release.
DIVIDENDS AND NORMAL COURSE ISSUER BID
At its meeting today, the Company's Board of Directors declared a regular quarterly dividend in the prescribed amount of C$0.04 per common share, payable September 14, 2018 to common shareholders of record August 31, 2018. During the second quarter, the Company paid $1.2 million in common share dividends or C$0.04 per share. Under its Normal Course Issuer Bid (NCIB) program, the Company purchased and subsequently cancelled 638,100 shares during the second quarter and another 150,300 shares subsequent to quarter end under its renewed NCIB.
MANAGEMENT COMMENTARY
"We grew our Pivot provided services and solutions revenue by 21.9% and the related gross margin increased by $5.5 million in the quarter compared to the prior year," said Kevin Shank, President and Chief Executive Officer. "The services contribution offset most of the margin pressure experienced in the product side of the business. Our strategy to enhance and grow Pivot's service contribution is on target and producing tangible value."
Pivot continues to invest in its business, including successfully advancing Smart Edge™, an innovative developer platform designed to support enterprise Multi-Access Edge Computing (MEC) solutions. Through use cases to date, the Smart EdgeTM solution has demonstrated its ability to improve performance, enhance user experiences and reduce ongoing edge total cost of ownership – all key factors in customer adoption of 5G technologies. Revenue generation continues to be anticipated by year end and is expected to grow with the adoption of 5G. "Commercializing Smart Edge™ is on track and well-supported from a dedicated leadership and investment perspective," said Mr. Shank.
"During the second quarter, we invested in personnel to fuel our services growth but still held the line on SG&A expenses through active cost management, assisted by higher marketing incentives from vendors and lower commissions," said David Toews, Interim Chief Financial Officer. "We will continue controlling our operating expenses and driving efficiencies where possible to offset market-wide product margin pressures."
OPERATING HIGHLIGHTS
During the second quarter, the Company continued to deliver on its key priorities. Among recent strategic highlights, Pivot:
Fulfilled its largest ever direct services contract of over $3 million with a consumer packaging customer
Won a $5 million direct services agreement with another customer, with work beginning in Q3
Completed its first Proof of Concept ("POC") for Smart Edge™ and, based on successful customer testing for the past six months, has expanded the initial deployment
Initiated a POC evaluation with another large customer to provide further validation of Smart Edge™
SECOND QUARTER RESULTS SUMMARY
Second quarter 2018 revenues were $381.3 million, 4.8% or $19.4 million below the same period in 2017 primarily due to lower product sales to major customers. Product revenue was $338.8 million, 6.2% or $22.4 million below Q2 2017. Second quarter service revenues were $42.6 million, 7.5% or $3.0 million higher than a year ago due to an increase in Pivot direct services of 21.9%, partially offset by a 13.1% decline in sales of third-party maintenance and support contracts. The Company continues to implement its services strategy across its customer base with positive momentum.
In general, changes in revenue quarter over quarter are attributable to a number of factors, including, but not limited to, timing of major projects and replenishments, vendor incentive programs, competitive pressures in the market, timing of service delivery and the mix in revenue between major and non-major customers. In the second quarter, major customers accounted for 38.0% of revenue compared to 39.8% in Q2 a year ago.
Second quarter 2018 cost of sales was $340.7 million, 4.8% or $17.0 million lower than a year ago reflecting lower revenues. Gross profit was $40.6 million (10.6% margin), down 5.5% or $2.3 million from $43.0 million (10.7% margin) in Q2 a year ago. Relatively stable gross margin performance reflected the consolidation of a partially owned business, acquired late last year, and significant improvement in service margins, offset by lower margins on product sales and a decrease in OEM maintenance revenue.
Second quarter selling, general and administrative ("SG&A") expenses were $35.5 million, 0.4% or $0.2 million lower than a year ago. SG&A performance reflected increased spending on Smart Edge™, increased headcount to enhance the Company's services portfolio and capabilities and the assumption of the overhead of an acquired business, offset by lower commission expenses, lower marketing costs due to increased vendor incentives and ongoing cost management.
Adjusted EBITDA1 (see non-IFRS measures) was $5.1 million compared to $7.3 million in Q2 2017 due to lower revenue and product margins, partially offset by improved service gross margins and lower SG&A costs. Net income was $0.3 million or $0.01 per share compared to net income of $2.0 million or $0.05 per share in Q2 2017.
LOOKING FORWARD
Pivot's strategy has several dimensions: i) build on Pivot's core business of selling IT solutions, both products and services; ii) enhance Pivot's service portfolio and capabilities, specifically related to services that Pivot delivers; iii) continue the Company's commercial transformation to expand Pivot's addressable opportunities with existing customers; iv) support customers as they expand internationally; v) improve cost management; vi) address legacy issues; and vii) commercialize and monetize the Smart Edge™ technology.
"For the balance of 2018 our focus is to build on the positive trend we're seeing in our services business and with our commercial transformation. We continue to pursue new profitable revenue streams to offset the downward margin pressure on our products business," said Mr. Shank.
QUARTERLY RESULTS MATERIALS
The Company's outlook is contained in its MD&A for the three and six months ended June 30, 2018, which is available along with the unaudited interim condensed consolidated financial statements, at www.pivotts.com and at www.sedar.com.
SECOND QUARTER CONFERENCE CALL
At 8:30 a.m. eastern on Wednesday, August 15, 2018, the Company will host a conference call featuring management's quarterly remarks and follow-up question and answer period with analysts. The conference call can be accessed live by dialing (416) 764 8688 five minutes prior to the scheduled start time.
ABOUT PIVOT TECHNOLOGY SOLUTIONS
Pivot is an industry-leading information technology services and solutions provider to many of the world's most successful companies, including members of the Fortune 1000, as well as governments and educational institutions. By leveraging its extensive OEM partnerships and its own fulfillment, professional, deployment, workforce and managed services, Pivot supports the IT infrastructure needs of its clients. For more information, visit www.pivotts.com.
The lower lows and lower highs are haunting shareholders.
I feel sorry for everyone trapped here as the lights go slowly out.
Tuition is very expensive sometimes.
GLTA & JMO
Its coming.
It must.
Trip zeros and then vapor.
Every day is a day closer to oblivion. Only massive paid pumps can keep this off the floor before a huge RS (200:1) wipes out everyone.
Then it will be a really sad day in SGSI-ville, and Larry will be laughing.
GLTA & JMO
NOPE.
No shares were bought back.
Toxic notes are real.
Read the Q's. and the PRE/DEF 14-C
Might help.
GLTA & JMO
Toxic notes.
Shady management.
Net Loss from Operations.
Reverse Split forthcoming.
Fluffy PR's
Paid PROMOs.
Market is apathetic after giving these guys the benefit of the doubt for so long.
And Dilution.
Hope that helps.
GLTA & JMO
I Agree. Geez.
GLTA & JMO
LMFAO.
I cant even make this stuff up.
The desperation is thick in SGSI-ville.
Tomorrow should be interesting.
GLTA & JMO
It would be hilarious if it wasnt so sad.
There are going to be some really upset shareholders pretty soon.
GLTA & JMO
Been hearing that for years.. and never seems to get out of sub-penny.
LOL
Trip zeros are around the corner.. Less than .0054 away.
GLTA & JMO
Standard boilerplate.
Its happening.
GLTA & JMO
I give it a week or so.
:)
Only .005 away.
Could happen with one dump.
GLTA & JMO
Lets chat after the 10Q.
Or RS.
Or whatever comes first.
:)
GLTA & JMO
10Q will likely include more toxic notes.
They need to disclose before those legends can be cleared.
Then the RS.
Then the dilution swamps the OS again..
WASH>RINSE>REPEAT>
If they were serious about an RS or uplist they would have also reduced the AS by the same ratio.
Wonder why they dumped all their commons for voting preferreds?
LOL
I cant even make this stuff up.
GLTA & JMO
Have you read Uplist requirements?
They don’t have the corporate governance or capital metrics to qualify.
Its a carrot dangling ruse to keep shareholders baited.
Pinksheet pattern continues..
GLTA & JMO
If you dont see the PRE-14C and DEF-14C you may want to look in the headlines here.
Basic DD.
GLTA & JMO
You realize they filed the paperwork for a massive reverse split right?
LOL
Its in the news.
GLTA & JMO
I think tomorrow will be the big crash.
Company has initiated cascading promotions and OTC Markets has flagged the paid promo on their site.
I mentioned before that the OTC discloses these to SEC, FINRA, etc.
Someone is gonna be left with a sore portfolio.
The small dump today cratered the BID.
Should be fun to see who is left to turn out the lights ahead of the reverse split.
GLTA & JMO
Blue Skies = Red Tides in pinky land.
Not even an over-priced pump will keep this outta the gutter.
The pattern continues.
GLTA & JMO
Wont matter ultimately. It will likely be quad zeros after the conversion.
200:1 will wipe out everyone with commons.
GLTA & JMO
And the late 10-Q announcement.
Like clockwork.
The pattern continues. Epic pumps result in disastrous dumps.
LOL
I cant even make this stuff up.
GLTA & JMO
Off a cliff.
Looks like he was smarter than the crowd.
GLTA & JMO
Its amazing what they can do with an orchestrated pump campaign these days.
It always seems to happen just before the PPS gets cratered.
Frozen ghosts everywhere.
Could more toxic notes in the 10Q be why they havent put it out?
Cant wait to see how the week ends. *wink wink*
GLTA & JMO
Maybe they dont want to disclose something within the filing.
YET.
Paid promos for a reason.
Think about it.
GLTA & JMO
That looks pretty awful actually.
Almost as bad as the 3 year chart.
Cant wait for Friday.
GLTA & JMO
Its a rehash.
Why no 10Q?
LOL
An RS cometh.
GLTA & JMO
Yes.
They are pumping this to high heaven.
I wonder why? *wink wink*
Hint: RS 200:1
Its coming up quick. Before their Q reveals another inconvenient truth.
The pattern continues.
GLTA & JMO
They already put out the PRE-14C and the DEF-14C
It could come any day now.
GLTA & JMO
New 52 week high.
For those who love technicals: https://www.barchart.com/stocks/quotes/XBC.VN/opinion
100% BUY
:)
GLTA & JMO
Oh ya?
LOL
Looks like the stuck got the short end of the stick.
Volume is just about done. Then the inconvenient truths seep in and the BID evaporates.
Just like last time. And the time before.
GLTA & JMO
Actually volume is starting to dwindle.
Almost time for the BIG DUMP.
Watch.
GLTA & JMO
Timmmmmmmmbeeeeeerrrrrrrrrrr.
A new round of frozen ghosts ahead of the RS.
LMAO
Whoever paid for the promo is getting their money out.
I cant even make this stuff up.
GLTA & JMO
Cant blame em for trying.
Most are unaware of the story here. Most will be stuck in the quagmire. Thats what happens with paid promotions.
Just history repeating itself in pinky land.
GLTA & JMO
The backslide will be epic here.
If Ponder was smart he’d freeze everyone by enacting the Reverse Split today.
Maybe the SEC will do that for him.
LOL
GLTA & JMO
The hype n swipe is in full effect.
LOL
Desperate times call for desperate measures. Even the penny harvests are getting more and more feeble.
More trapped shareholders ahead of the RS.
I cant even make this stuff up.
GLTA & JMO
Also flagged for Stock Promotion.
AGAIN.
Gotta love pink-sheets playbooks.
GLTA & JMO
Correction.
PINK SHEET STOCK.
Also a Reverse Split on Deck.
SGSI trying to sucker in a few more pegs to get the most of a 200:1
Get Ready.
GLTA & JMO
Nobody wants them.
Look at L2 and volume.
Its pretty clear the market is apathetic towards SGSI. And for good reason.
This Q will be another rude awakening for shareholders.
GLTA & JMO
Don’t forget to also rehash the 200 to 1 Reverse Split thats coming.
Its just around the corner.
GLTA & JMO
Best part:
“In in the coming months we will look for ways to increase our profit margins, grow organically and through strategic acquisitions, and increase shareholder value”.
LOL
The foreshadowing to temper expectations.
NET LOSS COMING UP!
GLTA & JMO