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Mach2money

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25/07/18

09:35

Post #: 34548984
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Originally posted by jlo2012 ↑

I was having a look at another "tech" company this morning - Livetiles (LVT). Very different business in the tech sector but on a similar growth path to ISX.

LVT just hit a ARR of $15mil as of the end of June quarter, up from $11.2m ARR as of end of March quarter. They have a bit more cash in the bank but their last 4c shows their quarterly cash burn of $6.5m is much higher than ISX.

I've used my estimates for this quarter for ISX to do a basic comparison and show how ISX may be undervalued comparatively.

Comparison:

LVT
Annualised Revenue runrate- $15mil

Cash: $24 mil (end of March likely less now due to cash burn).

Quarterly operating expenses - $6.5m (as of March).

Market cap - $330 mil

ISX
Annualised revenue runrate - $14mil (estimate)

Cash: $7mil (end of March though likely more now due to cash flow positive).

Quarterly operation expenses - $1.8mil (as of March). May be a bit higher now.

Market cap - $205m (expect all perf. shares vesting).

I think this shows that if the quarterly comes out as expected then ISX is undervalued comparatively. We have much lower operating expenses and are on a similar if not quicker revenue growth path. We have stopped burning cash and will be starting to build our cash balance.

I know there is more to it when comparing businesses but it gives an idea on what the market is willing to pay. I think once the perf shares cloud has passed it will be onward and upward for ISX.

Expand

Those figure will bring us in around 5.7m annual rev. What's that about 400-500% increase in last year?

Presuming we break even and make a profit this quarter ongoing we will be talking about inclusion in asx300 this time next year.

Currently got better cap, rev and earnings than the asx300 bottom dwellers.

ISX Price at posting: 20.5¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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12 Month High, page-10

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