I like this company. They are aggressive, focussed, and strong....

I like this company. They are aggressive, focussed, and strong. Cashflow looks strong, although their does seem to be substantial amounts brought in through capital raising. I like the development of their ReadyTech practice as it diversifies them away from a dependence on TechnologyOne. TechnologyOne try to distance themselves from Atturra and it is a matter of time before skills at Atturra are outdated on TNE products without any alliance in place.

The other issue I see is that they have $178m in revenue but only $2.1m of that number is real recurring revenue. Other items such as managed services revenue are easy to exit by customers. The revenue though is a good number and growing. I would also question the goodwill numbers at $56m as this is mostly consulting arrangements, but without more knowledge it must be accepted.

A strong performance from a well managed company but the price won't grow significantly until they get more recurring revenue. It has revenue of $178m and a market cap of $202m which is consistent with how they source revenue. If they start getting more recurring revenue they will increase valuation significantly. A good strategy would be to invest in more IP, rather than consulting.