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Thursday, June 19, 2008 1:54:02 AM
WNYN excellent post from that board.....
Posted by: tedpeele Date: Wednesday, June 18, 2008 8:37:09 PM
In reply to: The Rainmaker who wrote msg# 422 Post # of 426
Reasons I like Warp 9:
*The market opportunity. Their market is very large and has great long-term growth prospects. Internet commerce will continue to grow.
*They have the ability to grow fast. In their fiscal year ended June 30, 2007, revenues were up 55.7%, from $2.73 million to $1.76 million.
*They paid off their convertible, and did so by selling asset in a highly speculative stock (one person employed by Carbon Sciences), and reducing cash by only $121K! The effect of this on the share price should be dramatic. No more 10-15 million shares a month dumped on the market. The stock can breathe and thrive.
*The company is solid financially, very unusual for an OTC stock. Cash of 780K as of 3/31/08. Current liabilities of around 400K. LT of around 200K now. 9 month Operating income of 488K. 9 month cash from operations 563K. Gross margins of 95% are incredible, though of course it is software.
*They are rare for such a low market cap. There are over a thousand stocks with less than a $5 mill market cap, and many are very cheap. So, I did a custom screen on the msn site for stocks with under a $5m market cap, 12 month revs over $2m, 12 month op inc over zero, 12 month Gross margins over 60%, and latest qtr EPS over zero. I got 38 results. After weeding out invalid comparisons from old data (some last reported in 2003!) and foreigns stocks it was down to 5 including WNYN. Out of the other 4:
ELST had margins of 56% and an operating loss in latest qtr.
PWEB's revs were down 50%
SEYE had LT debt of 4.6 million but 6 month net over 362K
CLSI, not bad but barely above zero op earnings last qtr
*Their financials are getting even better. Operating income was $184K last qtr. It was $304K for the SIX months prior to that. Net income was $119K last qtr. It was $128K for the SIX months prior to that.
*Now that the convertible is paid off, the financials should improve even more. They won't have to cover convertible interest expense, which appears to me to have been over 200K in the last 12 months.
*They can handle fast growth. In the year of their 55% growth their OPERATING expenses dropped so much that they went from a net loss of $1.54 million to only $12 thousand.
*Revenues should not have nasty surprises. From the 10K: "We charge our customers a monthly fee..Unlike traditional software companies that sell software on a perpetual license where quarterly and annual revenues are very difficult to predict, our SaaS model spreads the collection of contracts over several quarters or years and makes our revenues more predictable for a longer period of time." It is nonseasonal too.
*A possible pickup in revenues. Revenues were down some in the last 3 and 9 months, while the bottom line improved. If revenues pick up again (and they probably will since they are in a growth field), the bottom line should be even better. Now more resources can be devoted toward growth. From the recent PR: "The prepayment is the final major step in the Company's debt reduction plan. The Company can now focus its efforts on growing its revenue and profitability. The company is optimistic that the stock price will now come to reflect a much more accurate valuation."
*They are more than a software company. They are also a consulting firm. From the 10K: "The Company also generates revenue by offering professional web production, graphic design, marketing, and other consulting services to support Warp 9 products and generally to aid in the operations of our customers' e-commerce activities."
*They aren't a pie in the sky. They have real products that we all can look at. And, more than one or two employees! From the 10K: "As of June 30, 2007, we had thirteen full time employees, four of whom are employed in administrative, marketing, and sales positions, and nine technical employees employed in research, development, and technical product maintenance positions."
*They have some impressive clients. From the recent PR: "Warp 9 powers some of the most successful e-commerce websites for retailers such as http://www.magellans.com, and Spiegel Brands' http://www.carabella.com, and http://www.ablambdin.com."
*They have some exciting things in the pipeline. From the 10Q: "While the Warp 9 Internet Commerce System (ICS) is our flagship and highest revenue product, we have been developing and deploying new products based on a proprietary virtual publishing technology that we have developed. These new products will allow for the creation of interactive web versions of paper catalogs and magazines where users can flip through pages with a mouse and click on products or advertisements. These magazines or catalogs will have built-in integration for e-commerce transactions through our ICS product and other transaction based activities. Accordingly, when shoppers click on a product, they are taken to the e-commerce product page where they can add that product to their shopping cart for purchasing. Clients utilizing this technology have discovered when exposing consumers to the virtual catalogs, a higher average order size and significant increase in rate of conversion result. We have been selling this solution on a limited basis as a professional service while we refine the product and technology. We believe there are many markets for our virtual catalog and magazine technology and we intend to test market these new products in the near future."
and
"Effective as of October 23, 2007, the Company signed a Nonexclusive Technology License Agreement (the “License Agreement”) with Zingerang Software, Inc., a California corporation (“Zingerang”). The Company granted a non-exclusive, worldwide, sub-licensable, non-transferable, royalty-bearing right and license to make, have made, import, use, offer for sale, sell, reproduce, distribute, display, perform or otherwise exploit the Company's Roaming Messenger® technology, Roaming Messenger® and eCapsule® trademarks, and patent application numbers 20060165030, 20060123396, and 20030110097 (collectively, the “Roaming Messenger Technology”) for a period of five years. Warp 9 is entitled to receive royalties based on a percentage of gross sales and retain ownership of the technology and trademarks, as well as any improvements and derivatives created by Zingerang."
*I like their website too :) http://www.warp9inc.com
I really don't see much to be concerned about. No legal issues, no big stock issues either that I saw. It seems to me that the market is slowly catching on to just what a gem WNYN is now that the convertible is paid off..should be interesting.
Posted by: tedpeele Date: Wednesday, June 18, 2008 8:37:09 PM
In reply to: The Rainmaker who wrote msg# 422 Post # of 426
Reasons I like Warp 9:
*The market opportunity. Their market is very large and has great long-term growth prospects. Internet commerce will continue to grow.
*They have the ability to grow fast. In their fiscal year ended June 30, 2007, revenues were up 55.7%, from $2.73 million to $1.76 million.
*They paid off their convertible, and did so by selling asset in a highly speculative stock (one person employed by Carbon Sciences), and reducing cash by only $121K! The effect of this on the share price should be dramatic. No more 10-15 million shares a month dumped on the market. The stock can breathe and thrive.
*The company is solid financially, very unusual for an OTC stock. Cash of 780K as of 3/31/08. Current liabilities of around 400K. LT of around 200K now. 9 month Operating income of 488K. 9 month cash from operations 563K. Gross margins of 95% are incredible, though of course it is software.
*They are rare for such a low market cap. There are over a thousand stocks with less than a $5 mill market cap, and many are very cheap. So, I did a custom screen on the msn site for stocks with under a $5m market cap, 12 month revs over $2m, 12 month op inc over zero, 12 month Gross margins over 60%, and latest qtr EPS over zero. I got 38 results. After weeding out invalid comparisons from old data (some last reported in 2003!) and foreigns stocks it was down to 5 including WNYN. Out of the other 4:
ELST had margins of 56% and an operating loss in latest qtr.
PWEB's revs were down 50%
SEYE had LT debt of 4.6 million but 6 month net over 362K
CLSI, not bad but barely above zero op earnings last qtr
*Their financials are getting even better. Operating income was $184K last qtr. It was $304K for the SIX months prior to that. Net income was $119K last qtr. It was $128K for the SIX months prior to that.
*Now that the convertible is paid off, the financials should improve even more. They won't have to cover convertible interest expense, which appears to me to have been over 200K in the last 12 months.
*They can handle fast growth. In the year of their 55% growth their OPERATING expenses dropped so much that they went from a net loss of $1.54 million to only $12 thousand.
*Revenues should not have nasty surprises. From the 10K: "We charge our customers a monthly fee..Unlike traditional software companies that sell software on a perpetual license where quarterly and annual revenues are very difficult to predict, our SaaS model spreads the collection of contracts over several quarters or years and makes our revenues more predictable for a longer period of time." It is nonseasonal too.
*A possible pickup in revenues. Revenues were down some in the last 3 and 9 months, while the bottom line improved. If revenues pick up again (and they probably will since they are in a growth field), the bottom line should be even better. Now more resources can be devoted toward growth. From the recent PR: "The prepayment is the final major step in the Company's debt reduction plan. The Company can now focus its efforts on growing its revenue and profitability. The company is optimistic that the stock price will now come to reflect a much more accurate valuation."
*They are more than a software company. They are also a consulting firm. From the 10K: "The Company also generates revenue by offering professional web production, graphic design, marketing, and other consulting services to support Warp 9 products and generally to aid in the operations of our customers' e-commerce activities."
*They aren't a pie in the sky. They have real products that we all can look at. And, more than one or two employees! From the 10K: "As of June 30, 2007, we had thirteen full time employees, four of whom are employed in administrative, marketing, and sales positions, and nine technical employees employed in research, development, and technical product maintenance positions."
*They have some impressive clients. From the recent PR: "Warp 9 powers some of the most successful e-commerce websites for retailers such as http://www.magellans.com, and Spiegel Brands' http://www.carabella.com, and http://www.ablambdin.com."
*They have some exciting things in the pipeline. From the 10Q: "While the Warp 9 Internet Commerce System (ICS) is our flagship and highest revenue product, we have been developing and deploying new products based on a proprietary virtual publishing technology that we have developed. These new products will allow for the creation of interactive web versions of paper catalogs and magazines where users can flip through pages with a mouse and click on products or advertisements. These magazines or catalogs will have built-in integration for e-commerce transactions through our ICS product and other transaction based activities. Accordingly, when shoppers click on a product, they are taken to the e-commerce product page where they can add that product to their shopping cart for purchasing. Clients utilizing this technology have discovered when exposing consumers to the virtual catalogs, a higher average order size and significant increase in rate of conversion result. We have been selling this solution on a limited basis as a professional service while we refine the product and technology. We believe there are many markets for our virtual catalog and magazine technology and we intend to test market these new products in the near future."
and
"Effective as of October 23, 2007, the Company signed a Nonexclusive Technology License Agreement (the “License Agreement”) with Zingerang Software, Inc., a California corporation (“Zingerang”). The Company granted a non-exclusive, worldwide, sub-licensable, non-transferable, royalty-bearing right and license to make, have made, import, use, offer for sale, sell, reproduce, distribute, display, perform or otherwise exploit the Company's Roaming Messenger® technology, Roaming Messenger® and eCapsule® trademarks, and patent application numbers 20060165030, 20060123396, and 20030110097 (collectively, the “Roaming Messenger Technology”) for a period of five years. Warp 9 is entitled to receive royalties based on a percentage of gross sales and retain ownership of the technology and trademarks, as well as any improvements and derivatives created by Zingerang."
*I like their website too :) http://www.warp9inc.com
I really don't see much to be concerned about. No legal issues, no big stock issues either that I saw. It seems to me that the market is slowly catching on to just what a gem WNYN is now that the convertible is paid off..should be interesting.
2008-The Rainmakers Moneymakers. stock symbol RAIN
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