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EVOL seems like a real opportunity here. Q3 report was ok. But it was the CC that was exciting. And I don't think many people listened in.

The CEO provided terrific guidance on the call. Q4 revenues expected to increase to $8.5M-$9M. That's 40%+ revenue growth vs. last year. Sure to get some attention. And will be the first in a series of very favorable revenue comps. Bottom line should look great too. There were $600K in 1-time expenses in Q3. And they see $400K in synergies in Q4, with more to follow in 2018. So just from those 2 things, income from operations could improve by $1M sequentially from Q3 to Q4. Wow! Plus add in any bottom line benefit that will result from growing revenues 13-20% sequentially. Could be looking at GAAP earnings of .12-.15/share in Q4. And then even better numbers in early 2018.

I was looking to add on a pullback. But the stock still seems quite attractive in the $4.60's. I see it taking out its 52-week high of $5.70 after the Q4 report. EVOL was a $10 stock a few years ago. IF things go right, wouldn't be surprised to see EVOL double from here in 2018.


Here's a few tidbits from the CEO on the CC:

In fact, during Q3 we had approximately $600,000 of one-time expenses that we do not anticipate will recur. As we integrate the operations of BLS and Lumata, and further leverage the synergies between each of the businesses we believe we will be able to lower fixed costs further and drive more meaningful profits and improved cash flow.

In the past we have not given formal guidance, but given the prior acquisitions, we felt it is important to provide some commentary on the upcoming quarter so you can see what the impact of these deals is expected to have in the near-term. We anticipate Q4 revenue will be in the $8.5 million to $9 million, representing sequential growth of 13% to 20%. Expenses are anticipated to be down as we will not have the one-time acquisition costs, and there is an additional approximately $400,000 of synergies that we expect would materialize in Q4 with more to follow throughout 2018.

Adjusted EBITDA is expected to be up on a sequential basis with the range dependent on the top line, and we are expected to continue to generate more positive cash flow from operations. While it is too early to provide formal guidance for 2018, we believe we are well positioned for growth and improved profitability and cash flow. We have identified synergies on the margin and expense side, cross-selling and up-selling synergies are tremendous, especially when considering our customer base. And we are moving into areas that are not dependent solely on telecom CapEx spending, and into market segments that are growing. There is a lot of excitement at Evolving Systems, while we have a lot more work to do, we are confident that we are on the right path.


Full CC transcript:

https://seekingalpha.com/article/4124642-evolving-systems-evol-ceo-thomas-thekkethala-q3-2017-results-earnings-call-transcript?part=single