Sonic Foundry, Inc. (SOFO) Research Update Released
Ideas get bigger when you share them...
New York, NY - January 7, 2014 (www.investorideas.com newswire) On January 6, 2014, Taglich Brothers released an updated research report on Sonic Foundry, Inc. (SOFO) and reiterated a Speculative Buy rating with the 12-month price target raised to $12.20 per share from $10.50 due to projected sales growth. The report noted the following key investment considerations:
US domestic growth potential is substantial. Only 10,000 out of 225,000 US higher education classrooms are equipped with a comprehensive lecture capture system.
1,500+ US education institutions use SOFO’s Mediasite lecture capture recorder technology in approximately 4,100 classrooms. Leverage of existing relationships and new institutional accounts are driving growth.
The global lecture capture education market is vast, with approximately 17,000 international post-secondary institutions. We estimate less than 1% of foreign educational institutions use Mediasite technology.
Student demand is driving the lecture capture market. Studies indicate lecture capture improves grades, enriches the learning experience, and increases student recruitment.
In 4Q13 sales (reported 11/21/13) increased by 8.7% to $6.8 million due to a 17.9% increase in product sales reflecting a 28% increase in Mediasite recorders to 414. The loss increased to ($0.17) per share vs. ($0.03) due to higher than anticipated expenses. We forecasted sales of $6.9 million and EPS of $0.03 per share.
For FY14, we project EPS of $0.30 per share (unchanged) on sales of $36.6 million, up from our prior sales forecast of $31.9 million. Two acquisitions account for our higher sales estimate. EPS forecast is unchanged, reflecting gross margin improvement offset by higher operating expenses, reduction in non-operating income, and increase in average shares outstanding.
For FY15, we project EPS of $0.76 per share on sales growth of 21.4% to $44.4 million reflecting 1,905 Mediasite units sold vs. 1,655 in FY14. We anticipate better gross margin and leveraging of operating costs.
It is never our intention to send unsolicited email. You are receiving this because you have consented to receive email correspondence on this subject matter. If you no longer want to receive emails from Taglich Brothers, Inc., please use the “unsubscribe” button at the bottom of this email or email us at email@example.com with the subject “unsubscribe” and we will manually remove you promptly. Please include your full name so that we can locate your information quickly and efficiently.
Sonic Foundry, founded in 1991 and headquartered in Madison, Wisconsin is a global provider of technology-based webcasting lecture capturing, and knowledge management to higher education institutions, corporations, and government agencies. Its technology is based on Mediasite® a patented webcasting platform.
Taglich Brothers, Inc. is full-service broker dealer focused exclusively on microcap companies. The Company defines the microcap segment of the equity market as companies with less than $250 million in market capitalization. Taglich Brothers currently offers institutional and retail brokerage services, investment banking and comprehensive research coverage to the investment community.
The Taglich Brothers' Equity Research department is dedicated to providing research reports that are informative, insightful and illuminating. Reports are designed to distill volumes of investment information into a concise, straightforward format so that busy professional investors can make informed investment decisions.
The information and statistical data contained herein have been obtained from sources, which we believe to be reliable but in no way are warranted by us as to accuracy or completeness. We do not undertake to advise you as to changes in figures or our views. This is not a solicitation of any order to buy or sell. Taglich Brothers, Inc. is fully disclosed with its clearing firm, Pershing, LLC, is not a market maker and does not sell to or buy from customers on a principal basis. The above statement is the opinion of Taglich Brothers, Inc. and is not a guarantee that the target price for the stock will be met or that predicted business results for the company will occur. There may be instances when fundamental, technical and quantitative opinions contained in this report are not in concert. We, our affiliates, any officer, director or stockholder or any member of their families may from time to time purchase or sell any of the above-mentioned or related securities. Analysts and members of the Research Department are prohibited from buying or selling securities issued by the companies that Taglich Brothers, Inc. has a research relationship with, except if ownership of such securities was prior to the start of such relationship, then an Analyst or member of the Research Department may sell such securities after obtaining expressed written permission from Compliance. All research issued by Taglich Brothers, Inc. is based on public information. As of the date of this report, we, our affiliates, any officer, director or stockholder, or any member of their families do not have a position in the stock of the company mentioned in this report. Taglich Brothers, Inc. does not currently have an Investment Banking relationship with the company mentioned in this report and was not a manager or co-manager of any offering for the company with in the last three years. The company prepaid for the first three months of distribution a total of $4,500 (USD) in October 2011, and will pay beginning March 2011 a monthly monetary fee of $1,500 (USD) to Taglich Brothers, Inc. for the creation and dissemination of research reports.
Published at the Investorideas.com Newswire - Big ideas for Global Investors
Disclaimer/ Disclosure:The Investorideas.com newswire is a third party publisher of news and research as well as creates original content as a news source. Original content created by investorideas is protected by copyright laws other than syndication rights. Investorideas is a news source on Google news and Linkedintoday plus hundreds of syndication partners. Our site does not make recommendations for purchases or sale of stocks or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated by featured companies, news submissions, content marketing and online advertising. Contact each company directly for press release questions. Disclosure is posted on each release if required but otherwise the news was not compensated for and is published for the sole interest of our readers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp
BC Residents and Investor Disclaimer : Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.