Intrinsyc Technology keeps piling up sales for it's main product,Open-Q computing modules.In fact revenues were up 40% over Q2in 2017 and it's backlog was equal to a year's sales.EBITDA was US $450,000 in comparison to US$95,000 in Q2 2017.And for 6 months EBITDAwent from CDN.$276,000 to CDN.$970,000.But unlike many junior technology companies it's growth rate over the last 5 years has been relatively ordinary.And it is not expanding it's product line very much.Although it has taken a small position in a company called Stream TV Networks.
A Connected Product Line
This blog has suggested to ITC several times that it cannot afford to rely solely on it's Open-Q computing modules.Although this product has done well and is growing.Can they count on Qualcom to continue to invest in and improve this line that apparently has few customers.What they need is complimentary product lines to augment this relatively successful technology product.With this in mind this blog has suggested it look at small telcos that have an online business.No news has been forthcoming here.If this has happened then expect revenues to start to grow even faster than in the past.However margins may be lower and earnings will take more time.
Conclusion
Intrinsyc is a very interesting company and it is at a crossroads.It will face more and more risk 2 and 3 years down the road from it's present relationship with Qualcom.At the same time there is some risk from investing in a new area.ITC is trading in the $1.50 area now and could easily hit $2.50 with news of a new product line.Another strategy is to add expertise so that they do not rely so much on Qualcom.Either way ITC is dependent on technical news to move past the $2.00 level now.
Thanks for Sharing an Information to us. Kindly visit our store for EHS Software and Health and Safety Management Softwares.
ReplyDeleteSafety Software | Health and Safety Software