$THNS engines running!
Thinspace Technology, Inc. (OTCBB:
THNS, “Thinspace”). We see Thinspace as a speculative microcap
investment option in technology sector. Thinspace has assembled an
interesting software and hardware product offering focused on delivering
cloud-based productivity solutions for small and mid-sized businesses,
enterprises, and government agencies. In our estimation, Thinspace is
positioning itself to target a large and growing market trend in information
technology (IT) towards cloud client solutions and workspace
virtualization, which make it easier, more cost efficient, and more flexible
for organizations to manage their technology assets.
The company has an experienced management team with backgrounds
that include time at Accenture, Infosys, Citrix, Microsoft and VMWare.
Moreover, the company appears to be gaining initial traction with its
products, claiming over 5,000 customers, and recently reporting 3Q14
results that included sharp growth over the comparable period in 3Q13.
Year-to-date, revenues have increased by more than fivefold from the
prior year. This note is an initiation primer and hence we are not issuing
a price target or forward estimates for Thinspace at this time. We expect
to issue a full initiation piece during 1H2015.
Thinspace is an emerging player in the large market for enterprise
virtualization, application delivery and cloud computing
Thinspace operates in what we view as the large rapidly growing markets
of application delivery, virtualization, and cloud client technology. The
company targets businesses and government customers both in the
United States and globally with an expanding product suite that includes
both software and hardware applications. The company’s core products
are designed to make it easier and more cost efficient for clients and IT
managers to control and mange computing operations securely from any
server virtually.
We see this as a large market opportunity for Thinspace to target, and
one that attempts to position the company to attack several macro trends
in enterprise Information Technology management, as it has become
increasingly complex for businesses to manage, monitor and secure IT
systems with the proliferation and variety of mobile phones, tablets, and
other devices using corporate networks. IDC sees 2014 as the year in
which desktop virtualization becomes mainstream given the compelling
attributes of energy efficiency, low cost, flexibility, and security. Further,
Gartner Research expects the global market size for desktop
virtualization to surpass $65Bn in 2015E.
Strong 3Q14 results show robust growth and good execution
Thinspace reported strong third quarter results on November 17, 2014,
which demonstrated a continuation of an impressive growth trend for the
company so far in 2014. The company reported revenues of $2.3mn
during the quarter – representing growth of 465% over the prior year
period.
