Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Revenue: 2013 Q3, 66% Agile & 34% software development w/o eBN. Very happy with how Ash explained the eBN transaction and how Santeon benefits. (IMO - the MSA between Santeon and eBN is likely to continue for at least two years.)
50% commercial
50% government
potential growth in public sector
G&A up 58% - Staff; 2 BD people for commercial and government sector(BD staff to build revenue pipeline in 2014/2015/2016; BD always takes longer than planned)
$500K cash on balance sheet for quarter ending December 31, 2013.
Client service managers - not billable, which is always the case.
Santeon is adding personnel ahead of revenue than adding personnel at the last second, as it was hurting revenue growth.
Robert (4.5% shareholder) waiting for higher levels of revenue to show up.
With software dev, possible licensing/subscription products. (this is what interests me the most)
In future calls, I'd like to hear more about social media and community outreach. If Santeon is the go to organization for agile in the Washington, DC metro area, I expect to see more events and news. As a leader in this space, what conferences and papers will Santeon attend and/or write for 2014? Those always make good PRs. I'd like to see Santeon host a hackathon in February/March 2014.
Pulse of the Agile Market
I turn to Rally Software for the pulse of the agile market.
Rally Software Takes On Tech Giants In 'Agile' Market
Read More At Investor's Business Daily: http://news.investors.com/technology/100913-674418-rally-software-growing-in-agile-software-market.htm
Follow us: @IBDinvestors on Twitter | InvestorsBusinessDaily on Facebook
Santeon Divests eBenefits Network Business
Sale Positions Company to Focus on Opportunities in Rapidly-Growing Agile Services and Outsourced Software Development Markets
http://finance.yahoo.com/news/santeon-divests-ebenefits-network-business-210000534.html
How much revenue is eBN generating? $56K/month? Divested price is 10 months of revenue. Quite concerning asset is divested before a new contract is awarded?
Curious if a direct contract will indeed occur. Santeon will continue to earn revenue under the MSA. Unclear on "Santeon will receive 20% of the first four (4) years value of such contract." If the contract value is $5 million over four years, what does Santeon get? Perhaps it should have said Santeon will earn a 20% royalty on profits. Or does the new business guarantee Santeon 20% of the work. If eBN is better off as a separate entity from Santeon, what were the restrictions it couldn't succeed at Santeon?
Notes from conference call:
400 providers on eBN
300 employers for a total half of million employees/dependents. Charge for employees 225,000 for about a $0.25/month. Is this per month ($56,250) or per year?
10 company licensing eBN - wholesalers (90%)
At the request of larger partners, conduct direct sales (10%)
On the positive side, Santeon gets $500K. What will the $500K be used for if we are a profitable company?
While I am a huge fan of Aigle, I need more info on "Rapidly-Growing Agile Services" when earnings our released. I am most interested in "Outsourced Software Development" as long as Agile has access to some IP. Or are we just building software for others and nothing for us? If Santeon does own IP, will this too be divested to other investors?
Overall questions, is $500K a fair price for eBN, especially with the debacle of healthcare.gov and the urgent need for healthcare benefits. I do hope a direct contract is signed with eBN. Last question is what portion of Ash's time will be split between the two entities?
http://biz.yahoo.com/e/131101/sant8-k.html
Form 8-K for SANTEON GROUP, INC.
--------------------------------------------------------------------------------
1-Nov-2013
Completion of Acquisition or Disposition of Assets, Financial Statements and
Item 2.01 Completion of Acquistion or Disposition of Assets.
On October 31, 2013, Santeon Group Inc. and its wholly-owned subsidiary, Santeon, Inc. (collectively, "Santeon") entered into an Asset Purchase Agreement with eBenefits Network LLC, a Delaware limited liability company ("eBenefits") whereby Santeon sold to eBenefits its cloud-based service division that automates the employee benefits enrollment process. This business was sold to eBenefits for $500,000.00 in cash, subject to post-closing purchase price adjustments.
Santeon's Chief Executive Officer, Dr. Ash Rofail, is a member of eBenefits.
Santeon completed the sale of these assets to eBenefits on October 31, 2013 and eBenefits paid the entire purchase price, with $100,000 being placed into escrow to cover any downward adjustment of the purchase price that may occur. As of now, Santeon does not anticipate that the purchase price will be reduced in any significant amount. However, Santeon could receive an increase to the purchase price in the event that a certain contract that is in the negotiation process is ultimately awarded to eBenefits. In that case, Santeon will receive 20% of the first four (4) years value of such contract.
Let me know if you have any other material you'd like added.
I removed the old text and added relevant links.
Board administrators, can you delete some of the old information above this message board? I disliked when it was done, but now it is outdated. Santeon has a webpage and investor section. No need to restate info here.
My preference is the chart and message board.
Anyone else have a suggestion?
Look at all the job requirements Santeon has posted.
Did anyone apply? Why are there so many jobs at Santeon? Must be work to do, and that's a great thing!
I'd be interested to know are these for upcoming bids or immediate need. Does Santeon have contracts, and it can't find qualified people fast enough? Does Santeon have a recruiter?
It would be helpful to organize these postings in a better way. I do not like scrolling down. List all the positions and their respective URLs. Each position should have its own URL to optimize them for the search engines. Maybe have two sections: immediate need and ongoing job openings.
http://www.santeon.com/company/careers/career-openings
Santeon on Twitter
Like it or not, a company's Twitter's presence is necessary.
Post trainings, seminars, upcoming speakers, company press releases. Retweet articles of interest.
By not using Twitter, it's a huge missed opportunity to reach out and connect beyond your immediate agile community.
https://twitter.com/santeongroup
55 followers
If you are looking for someone to manage your social media presence (LinkedIn/Twitter), I can do it for a flat monthly fee and stock.
Santeon on LinkedIn
Santeon needs a larger presence on LinkedIn
http://www.linkedin.com/company/121151
With 572 followers, that is a great network to expand and leverage. I'd like to see this network reach 1,000.
The logo in the profile needs to be fitted for LinkedIn.
Feedback on the conference call:
http://www.ubroadcast.com/show/santeon-group-inc
I would show the Santeon logo with the title of the call until Ash starts to speak. (same as when Mark speaks or the FAQ session, please show slides). Then post those slides on the website. Quite brave to push for a webcast with little branding and room setting.
Once he starts to speak, need Santeon logo in the background on the wall. Also, a higher resolution webcam is necessary. I recommend this as an add-on cam: http://www.amazon.com/gp/product/B006JH8T3S
GSA Schedule is a positive development for Santeon, especially for a company located in the Washington, DC metro area.
uBroadcast player doesn't allow user to rewind? Didn't get the exact GSA schedule number. You don't apply for GSA schedule if you are going out of the business. You submit the paperwork to allow the federal government to utilize your services in a simplified manner.
Santeon's role in healthcare exchanges must be known and understood better. Why didn't Santeon create its own healthcare exchange?
As an American, I proud to know Santeon is improving how the federal government operates. Agile is here to stay.
To the investor Rob who owns about 5%:
please no major buyback, Santeon is such an infant company.
no forward 10-1 split
Why is Mark not in the same room as Ash?
I love the words billable headcount.
KCSA - $10K doesn't seem like a lot to me for this service. Ash and Mark are busy running the company.
I like how Rob said he bought more stock than Ash did in the last 18 months.
How much time is left in the video? There is no time indicating when a video will end.
Licensing technology is excellent for reoccurring revenue.
400 providers on eBN
300 employers for a total half of million employees/dependents. Charge for employees 225,000 for about a $0.25/month. Is this per month ($56,250) or per year?
10 company licensing eBN - wholesalers (90%)
At the request of larger partners, conduct direct sales (10%)
15 revenue generating individuals (Agile)
20-30 software development folks (Egypt /India with 2-4 in U.S.) - all Santeon employees. To reduce expenses, moved contractors to employee status.
In recent months, I am quite pleased to see Santeon issuing more videos and a newsletter. I am following the company more than I am following the stock price. With the IPO of RALY, I wonder how Santeon can be more like Rally Software. SANT needs government contracts and a few training sessions a week to pay the bills and staff, but the company should be exploring software technology (e.g., eBN) to disrupt any established environment. That's the real moneymaker and investment opportunity for us. Fortunately, the company is profitable under the current arrangement. However, SANT is unknown outside its own Agile community, which is fine, until we have something bigger to celebrate. For me, I will add a thousand dollars worth of shares. My target is theyear2017.
http://www.youtube.com/user/SanteonGroup
http://www.santeon.com/insight-blog/newsletter
Date Action (Buy, Sell) Symbol Quantity Price Adj Price Principal Amount Commission Net Amount
2/12/2013 Bought SANT 175 1.39 1.39 243.25 9.99 253.24
8/20/2012 Bought SANT 80,000 0.006 2.40 480 9.99 489.99
8/6/2012 Bought SANT 100,000 0.0055 2.20 550 9.99 559.99
6/27/2012 Bought SANT 50,000 0.01 4.00 500 9.99 509.99
6/11/2012 Bought SANT 20,000 0.01 4.00 200 9.99 209.99
5/23/2012 Bought SANT 75,000 0.0104 4.16 780 9.99 789.99
5/9/2012 Bought SANT 50,000 0.0119 4.76 595 9.99 604.99
3/27/2012 Bought SANT 50,000 0.013 5.20 650 9.99 659.99
On Wednesday, January 23, Ameritrade charged a $38 "Mandatory Reorganization fee" for the share conversion from 400 to 1.
https://www.tdameritrade.com/pricing/brokerage-fees.page
As promised, Ash and Mark delivered the financials. Thank you!
For those who arrived in 2010/2011, yes, it's been a rough ride. For those arriving in 2012, like me, the ride hasn't been that rough. It all depended on the financials; we are now there.
Meanwhile, the company continued to operate and innovate.
Note 4. Capital Stock
Are these transactions done based on the current share price at the time?
During the nine months ended September 30, 2011, the Company issued
1. 3,000,000 shares of common stock for cash, valued at $20,000. These shares were not physically certificated until early 2012 and are presented as common shares to be issued.
= .0067 / share
2. 300,000 shares of common stock for cash, valued at $3,000. These shares were not physically certificated until early mid 2012 and are presented as common shares to be issued.
= .01 / share
3. 30,000,000 shares of common stock for cash, valued at $175,000. These shares were not physically certificated until early 2012 and are presented as common shares to be issued.
= .005833
4. 1,587,302 shares of common stock for cash, valued at $10,000. These shares were not physically certificated until early 2012 and are presented as common shares to be issued.
= .0063
5. 5,889,375 shares of common stock as stock-based compensation valued at $43,894. 2,889,375 of these shares were not physically certificated until early 2012 and are presented as common shares to be issued.
= .0075308
The above securities are exempt from registration under the Securities Act of 1933, as amended, pursuant to the provisions of Section 4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering. Shares authorized for issuance, but not physically certificated until after September 30, 2011 have been included in the calculations of weighted average number of common shares outstanding and earnings (loss) per share for the three and nine months ended September 30, 2011 and 2010 as they are considered outstanding.
Not sure this is a typical penny stock. It appears this is a real company that wanted to go public (Santeon's expertise is in the right markets), but took over a penny company loaded with baggage.
Question is will this action sink Santeon or not? Surviving on cash flow is more indicative of a real company than selling stock to fund operations.
Looking for the financial report, the good, the bad, the ugly. Time and money are a wasting.
ok, thank you for the insight.
It appears this is offset by $550K in accounts payable and accrued expenses (pg. 16).
Any thoughts on $581K in accounts receivable (pg. F-3)? At what stage are revenues booked (invoice to client or ?)?
Once the financial reports are in order (loss/profit - not important to me) - only potential, I will invest more.
As a public company, Santeon has certain duties and financial reports are a fundamental requirement. Looking forward to the next 35 days.
With that said, I found this interesting to read.
Eric Ries: “Entrepreneurs Should Build An Alternative to the Public Markets”
http://pandodaily.com/2012/08/24/eric-ries-entrepreneurs-should-build-an-alternative-to-the-public-markets/
If the financials get turned in within the next 45 days, we should expect positive price action.
If the financials do not get submitted, I expect we will drag lower and lower.
Thank you for sharing. It affirms my thoughts about this company: 4 high-growth markets over the next few years.
Why no news? Why release news and developments when the financials are not in order? Investors want financials. There's about 45 days until September 30. Will they be submitted on-time?
I'm in this for the long haul. Hope to sell a small position next year to recover initial investment, and then scale out in 2017 - five years from now.