BSM Technologies has a big upside, Paradigm Capital says

Feb 13 03:02 2018 Print This Article

BSM Technologies (TSX:GPS) may have missed its revenue goals for fiscal Q1 but the company’s higher-than-expected subscription rate has Paradigm Capital’s Daniel Kim maintaining his “Buy” rating, with a 12-month target price of $2.00.

Last week, Toronto-based BSM released its financial and operational results for the three months ending December 31, 2017, with total revenue of $14.9 million, down 19 per cent from the same quarter last year, and EBITDA of $1.4 million, down 50 per cent year over year. (That compares to a street estimate on revenue/EBITDA of $18.4 million/$2.8 million.)

Attributed to poorer sales in hardware and professional services, the topline drop for the GPS fleet tracking company has been chalked up to volatility in hardware sales and quarter-to-quarter variability, the company comes across as strong based on an uptick in customer subscription add-ons, according to Kim, who says that BSM’s M&A activity in recent years has served it well.

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Cantech Letter

Founded in 2008 by Nick Waddell, Cantech Letter is an online magazine focusing on Canadian technology. The site has grown into one of the most popular and respected financial sites in Canada, and was described by Canadian Business Magazine as “one of Canada’s premier technology newsletters”. Waddell, who is Senior Editor, is routinely called on by the mainstream media for perspective on Canadian technology, and has been featured on BNN, CTV News Channel, and the CBC program “The Lang and O’Leary Exchange” in addition to mainstream print media such as The Guardian, The International Business Times, The Globe and Mail, Macleans, The Waterloo Record , Canadian Business, Slate, and Business Insider. You can email Nick at nick@cantechletter.com Cantech Letter is focused on those companies listed on the TSX and TSXV Technology, Cleantech and Life Sciences Sectors. Each year we present the Cantech Letter Awards, which honor Canada’s Top Technology Stock and Top Technology Stock Executive.

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