Bridgeline Digital, Inc. (BLIN) Research Update Released
New York, NY - September 3, 2014 (www.investorideas.com newswire) On September 2, 2014, Taglich Brothers released an updated research report on Bridgeline Digital, Inc. (BLIN) and reiterated a Speculative Buy rating with the 12-month price target lowered to $1.10 per share from $1.20 per share. The report noted the following key investment considerations:
- The company’s iAPPSds subscription micro-site offering has growth potential since BLIN has deployed over 2,300 in a potential market of 1.5 million sites in North America. We project at least 16,000 active BLIN iAPPSds sites in FY17.
- BLIN commenced deployment of two large iAPPSds contracts for 3,700 sites and 1,200 sites, respectively. We project $750,000 in quarterly sales when all 4,900 iAPPSds subscription sites are active.
- The iAPPSds micro-site platform should have over 10,000 sites booked and ready for deployment by December 31, 2014. We estimate a subscription/perpetual license gross margin in excess of 77% in FY15, up from 71.3% in FY14, driven by a $2.5 million increase in iAPPSds revenue to $8.4 million.
- In 3Q14 (reported 8/14/14) sales increased 9.9% to $6.2 million due to growth of 65% in subscription/perpetual license revenue to $1.5 million. Loss per share was ($0.06) vs. ($0.10). We projected sales of $6 million and a loss of ($0.07) per share.
- We are maintaining our FY14 sales forecast of $24 million. Due to an improvement in our total gross margin forecast to 49.4% (prior was 47.2%), we reduced our loss per share projection to ($0.29) from ($0.32). Gross margin improvement is due to growth in higher-margin iAPPSds sales.
- In FY15 we project 17.4% sales growth to $28.2 million, reflecting a 41.3% increase in subscription/perpetual license revenue due to iAPPSds sales. The pace of iAPPSds deployments will determine when positive cash flow is achieved. We project cash burn narrowing to $545,000 from $2.8 million in FY14. We project a loss per share of ($0.16) on gross margin of 53.6% from 49.4% in FY14, reflecting higher margin iAPPSds sales.
The full report can be viewed at http://www.taglichbrothers.com
Bridgeline Digital Inc., headquartered in Woburn, Massachusetts is a developer of software technology, tools, and service that enable organizations to optimize their online business processes. The company’s iAPPS technology suite's aim is to unify web content management, analytics, e-commerce, and e-marketing capabilities that enhance both web and customer experience management capabilities.
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 statements are the opinion of Taglich Brothers, Inc. and are 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 the reports 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. Taglich Brothers, Inc. does not currently have an Investment Banking relationship with the company mentioned and was not a manager or co-manager of any offering for the company within the last three years. In September 2012 the company paid an initial monetary engagement fee of US$4,500 to Taglich Brothers, Inc. representing payment for the first three months of creation and dissemination of research reports, after which the company will pay Taglich Brothers, Inc. a monetary fee of US$1,500 per month for a minimum of three more months for such services.For further information and Taglich Brothers, Inc. ownership data please refer to each individual report.
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