At these prices fully diluted MC is $15m on my envelope calculations. Revenue (excluding divested division) grew by ~30% last year, plus a further steady $1.5m from the R&D incentives. The recorded loss was largely explained by a ramp up in investment although there were other cost increases the value of which are harder to quantify (consultancies, generous employee/management treatment).
The million dollar question is what EVS will show for its investment ramp up. Lots to like about this company - strong revenue growth, scaleable product with recurring earnings that should see rev growth drop straight to bottom line, growing industry with leading product and many potential customers.
Two major dislikes are the generous options and treatment of management/key personnel, and also the fact the business is close to the wind cash wise and could need another cap raise if not cash flow neutral soon. Question then becomes, what are thoughts for revenue and earnings growth this year? Will we need another cap raise?
EVS Price at posting:
6.5¢ Sentiment: None Disclosure: Held
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