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Sunday, 07/28/2013 11:00:24 AM

Sunday, July 28, 2013 11:00:24 AM

Post# of 13
Earnings report is going to be released on July 30. That will be a trigger for the short term. The company had met the analysts estimates in the last earnings, but reported $0.15 loss per share. The revenues were slightly below estimates at $33.90 million. On a yoy basis, the loss had increased substantially, as the company had reported a net loss of 9 cents in the same quarter last year. The revenue growth had continued with a 34% rise. The guidance for the second quarter is for a net loss of 16-18 cents per share, and for the full year, the loss is expected to be 55-62 cents per share. The stock is down by ~15% on a 52 week basis. However, the stock has performed well over the last 3 months with a 27% rise. Over the last 20 odd months of its history, it has remained volatile. Like many of the companies in early phase of their lives, Jive has shown exponential growth in revenues, but has not been able to become profitable. Over the last 5 years, the losses have accumulated, and they have grown during recent quarters. The accumulated deficit is in excess of $168 million, and the company is not expected to turn profitable soon. However, these companies are valued more on future potential than the current financial metrics. The future of the social business segment is promising, and the company has leveraged the growth in the segment for achieving topline growth. Yappn (YPPN) is shortly going to launch a multilingual social media platform where users can meet & chat without the language barrier. Jive has done well, but the bottomline has to improve soon otherwise the recent uptrend will be difficult to sustain. Thankfully, the debt on books is low at $10 million and the cash on books was $143 million on March 31.