Dicom Share Discussion Threads

[hylas] 23/7/2007 16:57

Yes very annoying when you see all the progress that Autonomy have made.
They seem to have totally wasted the upside potential of Mohomine.
And I still really do not see the sense of the Topcall purchase.

[gerdmuller] 23/7/2007 14:12

My doubts about the ceo seem to have been correct. Share price has been terrible since he took charge.

Let's just hope they get someone soon and someone who can move growth forward at a much faster rate. This may be the change dcm really needs.

[bluesbreaker] 04/7/2007 13:58

We make it an opportunity to top up, which I have done.

[gerdmuller] 04/7/2007 10:43

Not the news I was looking for but this company does at least continue to have good cash generation as mentioned in the statement.

I hope you are right Bakunin but they do need to start producing some good news to even begin to turn the share price around.

I just hope that much of today's news about the write down is already in the price after a very poor few months.

[boadicea] 04/7/2007 08:14

Trading statement -


Unexcitingly neutral except for the warning of £3M exceptionals to come in reallocating resources to their new "Intelligent Capture & Exchange suite of products and solutions" with the expectation of higher margins and scalability thereof.

Continued strong cash flow should keep the company well clear of any financing problems.

[gerdmuller] 29/6/2007 12:26

Got a reply from the ceo and this has eased some of my fears.

I was concerned at the level of growth being achieved (amongst other things) and that this was being transferred into the share price.

He still regards dcm as a long term growth company after the migration of the business toward becoming more of a provider of products and solutions to enable business process automation.

As I have always said this looks to be a very good company which generates a lot of cash. The talk of a takeover emerged about a year ago but has since cooled. Cash generators are what the pe industry loves as the debt can be serviced until the time comes to exit the company.

There has been an increase in interest in IT companies by pe firms because many are now seen as having reasonable ratings and good market positions.

I think the business model works by selling the licence and then producing a revenue stream by the quantity of items processed. Dicom also gets reoccurring revenue through the service arrangements. Many clients are blue chip so revenue streams should be consistent going forward.

It is not a good market for tech many tech cos at the moment as rising interest rates mean that their cash flows get discounted at a higher rate. The dollar is also causing dicom problems.

May be a good buying opportunity. I may have to think about it.

[gerdmuller] 28/6/2007 14:22

Seems a very long time since this company had a good day. Wrote to them last week about recent events and the fact that under the new ceo the share price is back at the 2005 level.

No reply as yet. New ceo still has to prove himself, seems to talk a good game but can he deliver? Jury is still out but share price seems to doubt him.

I am now beginning to believe that the only hope for this one is a bid.

[upside potential] 19/6/2007 16:36

bit of nibbling into the close

[gerdmuller] 07/6/2007 11:34

Their announcement actually went into my junkmail which is a little worrying.

No seriously, this is a quality company with a good track record.

[upside potential] 07/6/2007 11:17

announcement ? i can't see one ?
oh yes - got it now - cheers

[gerdmuller] 07/6/2007 11:07

Another decent announcement today. Company seems to be holding at this level now and forward pe of around 15.5 is probably about right at these growth rates.

Had a poor couple of years now with growth slowing but still looks like a solid company which produces a lot of cash. New ceo still has to prove himself but potential is still there.

I still feel that there is potential for a takeover of a company like this either trade or pe buyer. Strong market presence and good financial track record may attract interest.

If poor market conditions took this below £1.90 I would start to get interested in buying.

[simon gordon] 22/5/2007 13:23

On the 2006 balance sheet DCM hold £31.3m in cash but after the bills are paid this is reduced to £12m.

So if you are stripping out the cash, which cash figure are you using?

I am having trouble working out what is the correct/real EPS figure and which one the Brokers are using.

At first DCM looked like good value but after digging deeper it is becoming fair value.

[simon gordon] 21/5/2007 17:19

SteMis,

Do the Brokers use the adjusted EPS figure?

[stemis] 21/5/2007 16:18

Sorry my "Adjusted in 2007 Q3" means "Adjusted EPS for 2006, disclosed in the Q3 accounts".

[simon gordon] 21/5/2007 15:32

SteMis,

Is not the Adjusted EPS for 2007 Q3:

'Adjusted earnings per share reported at 8.9p, up 7% (2006: 8.3p)'

[simon gordon] 21/5/2007 14:22

Hi SteMis,

Thank you for that explanation.

Why are the Broker Forecasts not showing the adjusted EPS figure and what figure are they using?

[stemis] 21/5/2007 13:49

In 2006 Adjusted EPS = 14.3p. I presume this figure does not strip out the cash held!?

No it doesn't. It involves various add backs to profit (although the exact calculation in respect of y/e 30.6.06) seems to change from the 2006 finals to the 2007Q3 results:- Earnings Av shares EPS
Headline Numbers 7,542 86,299 8.7p
Add back:
Goodwill adjustment 399
Amortisation of intangibles 2,306
Restructuring costs 1,700
Share based payment 760
Fair value adj to financial instruments 224
Loss on disposal of discont. business 500
Tax affect of above (1,129)
Adjusted in 2006 finals 12,302 86,299 14.3p
Results from discontinued business (1,584)
Adjusted to share based payment (6)
Adjusted in 2007 Q3 10,718 86,299 12.4p

[simon gordon] 21/5/2007 13:29

In 2006 Adjusted EPS = 14.3p. I presume this figure does not strip out the cash held!?

In the Q3 2007 statement the Board stated:

'...confidence that we will achieve our goal of increased profitability for the year as a whole.'

Can someone explain the real EPS figures for me.

[upside potential] 20/5/2007 20:25

dont forget to strip out the cash when assessing the valuation - makes it cheaper of course.