The recent uptrend in the stock has been extremely strong. The rise has been backed by improvement in fundamentals. Net loss in 2013 was $11.8 million compared to a net loss of $34.3 million in 2012. The net sales also increased 10% in 2013. The last quarter (Q4'13) was not that great as the revenues remained flat on a yoy basis, and the net loss widened significantly from $3.3 million in Q4'12 to $11.7 million. However, this included a $10.2 million income tax expense resulting from the company's full valuation allowance against its deferred tax assets. The guidance for net sales for 2014 is for revenues in the range of $535-$565 million. The adjusted EBITDA is likely to increase by more than 70% to between $19-$21 million. The distribution segment is showing declines, while the e-commerce and fulfillment services segment is showing good growth. This is good because the e-commerce segment has better margins. The e-commerce segment can further bolster growth by using new tools. Yappn (YPPN) /Ortsbo has launched a multilingual e-commerce platform recently. Using the platform, integrated with the company's own e-commerce platform, online merchants can customize offerings, marketing messaging and emails in real time with multiple languages. This helps to create a real time experience to consumers in their preferred language without significant increase in resources or staffing by the merchant. Furthermore, competition from SaaS hurts sales of packaged software products. The acquisition of SpeedFC is also likely to support growth in revenues. Expansion of existing facilities is also likely to help. The stock has appreciated strongly, and it is very important that the fundamentals catch up soon. Otherwise, it may become difficult for the uptrend to continue. Any negative surprises can lead to a correction in the stock. Considering the recent track record of the company, one can definitely expect better performance in the near future.
