DSS Inc (DSS)

[Chas1961]

Takeaway From CC....

This by far has to be one of the most detailed CCs I have "read" in awhile. I think that you need to be careful with "interpretations" of statements but I also think they made some critical points during the conference. I appreciate that they just took a frontal assault at the sellers of post merger shares. This takes away all room for conspiracy theories. I think the board was ahead of the curve on this issue and kudo's to all.

As far as legacy DSS number, without getting too deep. I am very happy with the 17% revenue increase form last quarter. That is a great number. No sense picking apart each division as in DSS' case it is a sum of the whole. A 22% Gross increase is fantastic number. You can point to anything negative you want but those are critical. This speaks of their ability at some point to create positive cash flow so they will not have to dilute stock in the future. I am so glad that damn stock based compensation/legal fees are a thing of the past. What a drag on earnings. $6.8M cash position is great.

I didn't realize LTG changed over to DSS Technology Management. Finally starting to create a seamless company.

One of the items I wanted to learn about was what were they doing to grow the IP pipeline. (For you diehard IP centric investors)

The following statements are HUGE in my opinion:
Conversations are taking place with individuals that are interested in IP asset investment and not equity investment. This basically means they will get a piece of the settlement pie.

"DSS has the ability to attract outside capital which looks to me as they already have that avenue ready.

Jeff Ronaldi stated; "Our pipeline is currently a little bit too robust. This simply means they probably have companies already lined up. This also goes with milestone #3 to add 5-7 new IT investments by end of year.

I am curious if the ability to increase VA investment goes beyond 7%. My guess is it does. That Markman is going to be a very big case. I am willing to bet there are a few settlements prior to that. We now have two Markman stakes to put on the docket.

We now have measurable milestones and they stated they will fully report every quarter their progress.

1. Authentiguard revenue
2. Legacy DSS profitability
3. 5-7 IP investments
4. Positive Cash-Flow advancements

Would be nice to get some more coverage. Lake Street has been on the last two conference calls. Janney is a new entrant although I am not sure he got anything answered.

I personally would not read into anything regarding Salesforce yet. I know he made the statement about monetizing in other ways but I wouldn't infer it means settlement. JMHO

Janney Capital should have checked our board prior to asking for a response on the settlements.

I think the financials are exactly what we expected with a definite increase in revenue surprise. That 3Q has no where to go but way up. The bar is set.

I am expecting news to come out in the next couple weeks now, especially if this selling nonsense is behind us. I'll cruch the numbers as I am sure other swill do the same.

I hope this summarizes everything correctly.