Bridgeline Digital, Inc. (BLIN) Research Update Released
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New York, NY - February 27, 2014 (www.investorideas.com newswire) Taglich Brothers released an updated research report on Bridgeline Digital, Inc. (BLIN) and reiterated a Speculative Buy rating with a 12-month price target of $1.40 per share. The report noted the following key investment considerations:
We project annual iAPPS revenue growth of 25.8% (FY13A to FY15E), reflecting higher iAPPS digital subscriptions driven by the acquisition of 3,200 customer sites in August 2013.
In August 2013, Bridgeline acquired Elements Local, expanding its potential digital subscription customer base.
BLIN’s enterprise and digital subscription platforms are poised to reach $30.4 million in FY15, up from $25 million in FY14 and $19.2 million in FY13. iAPPS gains will be offset by a reduction in non-iAPPS sales by over $2 million to $2.4 million in FY14 and by $200,000 to $2.2 million in FY15.
In 1Q14 (reported 2/14/14) sales increased 5.2% to $6.5 million due to a $1.4 million gain in iAPPS sales to $5.6 million, partly offset by a $1.1 million reduction in non-iAPPS revenue. Losses were flat at ($0.04) per share. We projected sales of $6.7 million and a loss of ($0.04) per share.
We reduced our FY14 sales forecast by $400,000 to $27.4 million due to the unanticipated lack of Elements Local customer conversions in 1Q14. Due to a reduction in our gross margin forecast, our loss projection increased by $400,000 to $2.7 million or ($0.15) per share.
We lowered our FY15 sales projection by $800,000 to $32.6 million, reflecting the slower than anticipated pace of deploying iAPPS enterprise and digital subscription contracts. The pace of deployments will dictate when profitability is achieved. We have reduced our prior operating profit forecast of $60,000 to a loss of $195,000. Our net loss per share forecast increased to ($0.05) from ($0.04) per share.
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.
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