Bigtincan Holdings Ltd

Acquired FatStax while loss widened in FY 18: Software as a services’ group, Bigtincan Holdings Ltd (ASX: BTH) that provides a sales enablement platform has now acquired FatStax, LLC after making the cash payment of US$1.8 million. The balance of the purchase price,  which is capped at US$1.4 million, will be determined on the basis of the contracted annual recurring revenue as at the end of the first six month calendar period post completion. This amount has to be paid in the first quarter of FY20.BTH for FY 19 expects 35-40% revenue growth and expects retention to remain stable. Based on current scenario, BTH expects monthly recurring revenue (MRR) in Dec 2018 to approximately match monthly operating expenses in Dec 2018 on a normalised basis and therefore expects to deliver an operating neutral outcome.
 
On the other hand, BTH’s customer retention rate at June 2018 was 85%. The customer retention rate was stable during the second half of FY18, and the company expects it to continue to remain stable during FY19. Additionally, for FY 18, BTH has reported 15% rise in the net loss before tax to $6.8 m. The revenue in FY18 grew 42% to $13.1 m on the back of increases in contracted recurring revenue. Cash flow increased by 74% due to improved collections and multiyear prepayments. Meanwhile BTH stock has risen 1.75% in three months as on December 12, 2018. FY 18 was BTH’s first full year listed as a public company. Based on the mixed scenario and stock resistance seen around $0.35 and support round $0.28, we give a “Speculative Buy” recommendation on the stock at the current price of $ 0.30, up 3.45% on December 13, 2018.
 

FY 18 Financial Performance (Source: Company Reports)
 

Brainchip Holdings Ltd

Current Quarter scenario: Neuromorphic computing solutions’ provider, Brainchip Holdings Ltd (ASX: BRN) expects an increase in cash receipts from OEMs, System Integrators and other partners for the December Quarter 2018. The Company’s sales pipeline is expected to continue to grow and now comprises of over 500 leads, 105 active accounts, 55 qualified opportunities and 17 design wins. The Company currently is supporting about 21 committed or active trials and most of these are covered by Non-Disclosure Agreements. Further, BRN had at the end of the September quarter the cash balance of US$9.995M. Cash receipts for the September quarter were US$246,000 and the company at the end of the quarter had Headcount consisting of 35 fulltime employees and two fulltime contractors in sales and marketing. In the June quarter, BRN had invoiced SNTech US$609,135 on the basis of an existing Licensing and Development Agreement. SNTech has disputed the invoice and the Company had started a full audit of SNTech’s books, records and source code. The results of the audit were expected in November 2018. Meanwhile, BRN stock has fallen 29.41% in three months as on December 12, 2018. The stock is trading at the price of level $0.120, and has support at $0.11 and resistance at $0.20. Based on the foregoing, we give a “Speculative Buy” recommendation on the stock at the current price of $ 0.120.
 

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.