You guys are acting like the ERP business is terrible, but if it wasn't for JCS Asia and Riyo, they would be making a healthy and steadily growing profit here with increasing profit margins. In 2016 ERP did $5.3 million in revenue and $100k in EBIT, and in 2019 they did $9.8 million in revenue and almost $2.2 million in EBIT. All organic growth! On top of that they can go after bigger clients now and have lower churn.
See note 2 of annual report for different segments.
And TEMS seems to have stabilized.
If it wasn't for their adventures into Asia and Riyo, this company would make $1m in net profit. On a $11m market cap with no debt. With profit margins going up much faster than revenue from here on out. To a larger company who can absorb $3m in operating profit from their 2 largest segments, this company is probably worth at least $20m right now.
If anything JCS Asia and Riyo are quite risky. New unproven apps, vs their steady ERP business that has been constantly increasing profit margins.
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