Integrated Research Ltd (ASX: IRI)

IRI Details

IRI, which is a leading global provider of high availability performance management, business intelligence and proactive diagnostic software, faced a turbulent trading scenario on September 06, 2017 with the announcement that the chairman of the company, Mr Steve Killelea has sold 7.393% of his shareholding (equal to about 6,641,720 shares) by an institutional placement. This move has reduced Mr Steve’s voting power to 48.6% from 52.5%. However, the stock recovered about 5.8% on September 07, 2017, as the chairman advised of no further sell down during current reporting period. On the other hand, IRI had posted a record FY17 result with profit after tax surging by 16% to $18.5 million over prior corresponding year. 


FY17 Key Highlights (Source: Company Reports)

The group also reported for a 17% rise in new licence sales to $53.4 million while total revenue has been up 8%. Particularly, revenue from Payments, Infrastructure, Unified Communications and Contact Centre (UC) surged 58%, 17%, and 1%, respectively. Looking at broader perspective, IRI seems to have revenue which is 80% recurring, and has been growing about >20% on average for the last eight years. The return on equity is also high reflecting a compelling stock profile. Given the above in view of the price fluctuations, we give a “Hold” recommendation at the current price of $ 3.25


IRI Daily Chart (Source: Thomson Reuters) 

XPED Ltd (ASX: XPE)

XPE Details

XPED Ltd, the Australian technology company operating in the Internet of Things (IoT) technology sector, witnessed an initial stock price run up of over 8% on September 07, 2017 but ended flat, while the group has provided a positive company update. XPE now expects its revenue to increase from about $1,200,000 in FY 2017 to in excess of $2,500,000 in FY 2018, majorly driven by the JCT Healthcare business with a number of well-advanced opportunities in the pipeline. Strong revenue boost is also expected from its partnership with Shenzhen Lenze Technology Co. LTD. XPE expects to witness revenue potential in the Smart Home sector, with various Asian Based Telco opportunities in the pipeline. The group had also signed an agreement with Eastool Solution of Malaysia for seeking support for current business development activities within Malaysia. In addition, the company has undertaken a significant cost reduction program and the same is said to be driven by the completion of some of the work in progress projects. In a move under the program, XPE has agreed with Cadmon Advisory Pty Ltd to cease retainer payments for the remainder of the General Corporate Advisory Mandate. XPE has updated that savings of about $725,000 for this financial year are expected from the independent remuneration review that has been undertaken for the board. Owing to issues regarding costs and payments to suppliers etc, XPE stock had fallen about 73% in last six months (as at September 06, 2017). However, with cost reduction plans and recent indication of growth prospects, XPE might be able to meet its commitments.We give a “Hold” recommendation on the stock at the current price of $ 0.012


XPE Daily Chart (Source: Thomson Reuters)

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