Share Name Share Symbol Market Type Share ISIN Share Description
March Networks Corporation LSE:MNW London Ordinary Share CA5662191017 COM SHS NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 220.00p 0.00p 0.00p - - - 0 05:00:10
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Technology Hardware & Equipment - - - - 2.24

March Networks (MNW) Latest News

Real-Time news about March Networks (London Stock Exchange): 0 recent articles
More March Networks News
March Networks Takeover Rumours

March Networks (MNW) Share Charts

1 Year March Networks Chart

1 Year March Networks Chart

1 Month March Networks Chart

1 Month March Networks Chart

Intraday March Networks Chart

Intraday March Networks Chart

March Networks (MNW) Discussions and Chat

March Networks Forums and Chat

Date Time Title Posts
06/6/200823:59MARCH NETWORKS - explosive growth from Digital CCTV1,087
05/1/200716:43mnw first day60

Add a New Thread

March Networks (MNW) Most Recent Trades

No Trades
Trade Time Trade Price Trade Size Trade Value Trade Type
View all March Networks trades in real-time

March Networks (MNW) Top Chat Posts

DateSubject
29/9/2016
09:20
March Networks Daily Update: March Networks Corporation is listed in the Technology Hardware & Equipment sector of the London Stock Exchange with ticker MNW. The last closing price for March Networks was 220p.
March Networks Corporation has a 4 week average price of - and a 12 week average price of -.
The 1 year high share price is - while the 1 year low share price is currently -.
There are currently 1,019,252 shares in issue and the average daily traded volume is 0 shares. The market capitalisation of March Networks Corporation is £2,242,354.40.
11/5/2006
09:30
lordcoco: Had another go (but left out the tables as cannot tabulate): 10, 2006 All values in C$ unless otherwise noted.(TSX: MN; AIM: MNW) Outperform Above Average Risk Sharp Decline Unwarranted; Upgrading To Outperform Event MN shares have continued to decline in recent weeks, with no new fundamental reason evident. We view current risk/reward as compelling, and upgrade our rating on MN to Outperform. Investment Opinion • 45% Decline From Recent Highs; No Sufficient Fundamental Explanation Evident: MN shares have plummeted roughly 45% since just before FQ3 results, with no identifiable changes in the fundamentals or outlook for the company. There are a number of "partial explanations" for the decline (itemized below), but nowhere can we find a lost contract, product issue, imminent new competitive threats, financial shortfall, etc. Clearly there are risks out there for MN, but we do not see major new threats that would justify such a move. • Risk/Reward Now Compelling: At current levels, MN trades at 21.8x our C2007E GAAP EPS estimate, now in-line with peer companies. On this we note several points: MN has much a much higher growth rate than peers – almost 2x earnings growth and 3x revenue growth(see table below). 1-2 months ago, MN traded at a 5-7 P/E multiple premium, which we viewed as justifiable given MN's higher growth outlook. MN will pay no taxes for several years, though they are applied at a 36% rate in the GAAP EPS calculation – a higher rate than peers (see discussion and exhibit 3 below). On an untaxed basis, MN now trades at roughly 14.2x our C2007E Adj. EPS of $1.63. We note that this is now below the IPO valuation level (which at the time was roughly 16x forward year untaxed EPS). Netting out cash (mostly built through the IPO) and the cash benefit of the tax shields (which seems fair if we are to look at taxed EPS), then MN trades at approximately 15x 2007E GAAP EPS. • FQ4 Results To Be Reported on June 7th: We expect a solid quarter, with revenue of $21.6 million yielding EPS of $0.27. We will publish a full preview closer to the release. • Valuation: Our target remains $40.00, reflecting roughly 25x C2007E cash EPS of $1.63. This multiple is in line with our expected growth rate for MN over the next 3-5 years. Viewed another way, the target reflects roughly 30x C2007E GAAP EPS, plus cash (including the effect of the tax shield). We now rate MN Outperform, AAR with a $40.00 target.Priced as of prior trading day's market close, EST (unless otherwisestated). RBC Capital Markets March Networks Shares Were Arguably Overbought A Quarter Ago, But 40%+ Selloff Unwarranted, In Our View At their peak just before FQ3 results (late February, 2006), MN shares traded as high as $42. At that time the shares appeared fully valued – i.e., fully reflecting a premium valuation for very strong execution and market outlook. Since then, the shares have plummeted roughly 45%, with no identifiable changes in the fundamentals or outlook for the company. There are a number of "partial explanations" for the decline (itemized below), but nowhere can we find a lost contract, product issue, imminent new competitive threats, financial shortfall, etc. Clearly there are risks out there for MN, but we do not see major new threats that would justify such a move. Accordingly, we are upgrading the shares to Outperform, Above Average Risk from Sector Perform, Above Average Risk. Looking for Explanations There are a number of items frequently discussed to explain the move. In our view, many of these are 'after thefact'explanations, and not triggers for sellers of the stock. A number of the most common factors (some real, some perceived), Inclusion of taxes (at 36%) now planned in F2007 GAAP earnings: In conjunction with the FQ3 conference call, the company discussed the need to account for taxes beginning in FQ1/07. While there will be no cash impact for several years (MN is shielded by extensive tax losses), the move highlighted the aggressive valuation metrics at the time. While investors were somewhat accepting of forward P/Es in the high 20s, looking at GAAP earnings led to multiples in the low 40s. Even though there was no economic impact, valuation issues were a reason for profit-taking, and little incentive to buy (at the time). Entry of Cisco to the market: Shortly after FQ3, Cisco announced the acquisition of SyPixx for US$54 million. While relatively small, this did signal Cisco's intention to move perhaps more aggressively into the space. Large competitors are not new for March, but Cisco's reach cannot be ignored, and the potential for a new large competitor in the years to come again was a new concern to some holders. The "Large Customer" may seek a second source: This possibility has been well documented and discussed since before the IPO, and we have seen nothing which indicates a change in the planned deployment for that customer. Customer concentration has always been a consideration, but we expect this to decline in time as the rest of the customer base grows (as we saw in an exaggerated way last quarter). To our knowledge, this customer remains happy and steadily deploying March solutions. Potential sale of stock by Wesley Clover and TPC: Wesley Clover, controlled by Terry Matthews (MN's Chairman), owns just under 30% of March and its lock-up recently expired (1 year after the April 27th IPO). Wesley Clover is now in a blackout period pending the reporting of year-end results, and will be unable to sell shares until some time after June 8th. In our view, should such a transaction come forward, we would fully expect it to be handled in an orderly manner, as was the case following the 6-month lock-up on Insiders. If this is the reason (at least in part) for the share price weakness, then we would expect a rebound once such a trade is executed (again, if that were to be the case). The fear that "March missed Q4": We have heard many times in recent weeks about potential weakness in March's FQ4 (ended April), though we can never find a source, or even a reasonable discussion as to why this may be the case. We are comfortable with and reiterate our FQ4 forecast (revenue of $21.6 million yielding EPS of $0.27). We note several points: o We are now 10 days past quarter-end with no pre-announcement. While this does not necessarily preclude one, we note that the company's only previous pre-announcement (to the upside) came on November 3, 2005 – 3 days after the quarter end. o Our top-line forecast has relatively modest assumptions, in our view: We look for "Large Customer" revenue to rebound from $7.5 million in FQ3 to approximately $9 million this quarter. This compares to $9.7 million in FQ2, with the FQ3 dropoff related to a seasonal slowdown in deployments (the customer is a retailer). All other revenue is flat in our forecast – quite a conservative stance, in our view. o FQ4 expenses may be higher: March intends to aggressively hire additional salespeople, so it is possible that we are light on our Opex forecast. If so, we would expect a modest ($0.01-0.03 per share) impact to earnings, which is more than adequately reflected in the share price, in our view. May 10, 2006 2 RBC Capital Markets March Networks F2007 guidance may be more of an issue: Following FQ4 results wee expect March to issue F2007 annual guidance (as it did last year). We again expect management to be quite conservative in its forecast, including primarily revenue to be derived from current customer rollouts or firm contracts. Last year, we saw numbers far in excess of initial guidance, which was followed using the same principals. We expect revenue guidance to be on the order of 30% growth. We currently forecast 34% growth with relatively flat margins (EBT down 40 bps to 23%), and are comfortable with this given the firm nature of the revenue guidance. We may see some investor concern should official revenue guidance fall modestly short of consensus expectations, but we would be comfortable with revenue growth guidance in the 30% range. Profit-taking: In the recent decline we sometimes forget that MN shares are still up just under 100% from their $12 IPO price a year ago (though down from their one-time 240% gain). With uncertainty as to why the shares have been in decline, we expect some investors have opted to "take some off the table until they figure it out" – a direct quote from one former holder. In a sense, this becomes self-fulfilling, though does not offer a better explanation. Current Valuation Parameters At current levels, MN trades at 21.8x our C2007E GAAP EPS estimate, now in-line with peer companies. On this we note several points: MN has much a much higher growth rate than peers – almost 2x earnings growth and 3x revenue growth. 1-2 months ago, MN traded at a 5-7 P/E multiple premium, which we viewed as justifiable given MN's higher growth outlook. MN will pay no taxes for several years, though they are applied at a 36% rate in the GAAP EPS calculation – a higher rate than peers. On an untaxed basis, MN now trades at roughly 14.2x our C2007E Adj. EPS of $1.63. We note that this is now below the IPO valuation level (which at the time was roughly 16x forward year untaxed EPS). Netting out cash (mostly built through the IPO) and the cash benefit of the tax shields (which seems fair if we are to look at taxed EPS), then MN trades at approximately 15x 2007E GAAP EPS. RBC Capital Markets March Networks RBC Capital Markets estimates Given a 50%+ EPS growth rate for MN over 2004-2007 (74% pre-tax growth), we view current multiples as very compelling. On a sustainable basis over the next 3-4 years, we anticipate EPS growth on the order of 30%+. Taxes skew the valuation and peer comparison: March's tax situation complicates the measurements somewhat, and unfairly depicts EPS trends as we move from F2006 to F2007. As discussed at the end of Q3/06, March will begin accounting for Income Tax at a 36% tax rate beginning in Q1/07, though previous losses, etc. will shield the company from paying cash taxes for several years. On a cash basis, we expect MN to generate EPS of approx. $1.60 in C2007, implying a P/E multiple of 14.2x on Cash EPS. Further complicating the comparison, NICE and Verint have expected tax rates of 19.5% and 25% respectively for F2007, well below MN's accounting levels. RBC Capital Markets estimates Note this table assumes constant share counts for all companies, unlike our calculation above (14.2x for MN) which assumes growth in share count through C2007. Notably, on an untaxed basis MN trades at a discount to the peer group, despite higher projected growth rates. Looking for Upside Potential New Enterprise Deals: The first and most obvious driver of the share price will be large contract announcements. We have seen several moderate deals in recent months, with Union Pacific being the last "large" deal. Watching the news releases is not a reliable measure of contract wins, however, with many customers not permitting MN to publicize their security initiatives. New deals are difficult to forecast, though we expect a relatively steady flow (including in the transportation vertical) in F2007. Potential Acquisition: An acquisition by MN would likely be viewed positively by the market. Assuming MN stays within their specified parameters for such a deal – complementary software offerings, customer base in a defined vertical (likely retail), and accretive to earnings, then this should boost the growth outlook and alleviate some longer-term concerns as the company diversifies beyond hardware. Stronger Revenue Growth: In our view, the real upside driver will be higher levels of revenue growth, along with sustained or improved operating margins. Currently, MN is operating with very strong gross margins and controlled OpEx, yielding Operating Margins around 22%. It will be difficult to improve margins beyond current levels, in our view. In fact, we could see margins decline modestly in coming quarters/years as the sales force grows more aggressively (with expenses likely leading their contribution). So earnings growth over the next several years will primarily be driven by revenue growth, in our view. Revenue Growth Sensitivities: We are forecasting 34% revenue growth in F2007. Each 2% increment in revenue growth adds $0.03 to EPS. This implies the following range of P/E multiples based on sensitivity to revenue growth: May 10, 2006 4 RBC Capital Markets March Networks RBC Capital Markets estimates Valuation and Recommendation With the recent share price weakness and no evident change in fundamental outlook, we believe the risk/reward profile of MN is compelling and upgrade the shares to Outperform, Above Average Risk. We remain firm believers in the market opportunity facing March over the next several years, and in their product strategy and execution ability to capitalize on that. Valuation has been our primary concern in recent months, but we believe the declining share price has mitigated the risks that are out there. MN now trades at similar multiples to the peer group, yet has a higher projected growth rate and faces many of the same risks. Our price target remains at $40.00, reflecting roughly 25x C2007E Cash EPS of $1.63. This multiple is in line with our expected growth rate for MN over the next 3-5 years. Viewed another way, our price target reflects roughly 30x C2007E GAAP EPS, plus Cash (including the effect of the tax shield). We upgrade our recommendation on MN to Outperform, Above Average Risk (from Sector Perform) with a price target of $40.00. Price Target Impediments Our financial forecasts are predicated on the continued deployment of March's solutions at existing customers, and continued wins with new customers to replenish the backlog. Severe pricing pressure, or major technological advances by competitors would threaten these assumptions and therefore impede achievement of our price target. Company Description March Networks is a leading provider of IP-based digital video surveillance solutions to the banking, retail and transportation sectors. March introduced its networked Digital Video Recorder (DVR) product in 2002, and since then has grown its installed base to over 21,500 DVRs worldwide. The company has an impressive list of clientele including U.S. Bancorp, Wachovia Corp., DHL International, Cadillac Fairview, Singapore Mass Rapid Transit, and the Royal Bank of Canada.
10/5/2006
08:39
lordcoco: sandbank, A link to recent price history and volume on the TSX (from where the share price here is driven): http://tsedb.globeinvestor.com/invest/investSQL/tsx.price_history?pi_symbol=MN-T
05/5/2006
15:28
unclebooks: No postings recently. As a newcomer to MNW, on the recommendation of a friend, can anyone advise the reason for the latest fall away in the share price-I have taken on board previous comments regarding 'stock lock-ups' etc although I cannot claim to understand all this jargon. Any comments would be much appreciated-is Wal-mart still a feature here? Originally liked the look of this one. Thanks.
07/4/2006
07:58
lordcoco: Taken from another board, sums up situation pretty well. RBC note: ------- MN shares are off approximately $6 over the past 2 weeks, with no real fundamental news. We review valuation parameters and drivers after the decline of ~30% from February highs. Investment Opinion • Fundamentals Appear Solid Though Valuation Has Been Our Concern: In recent months we have remained very positive on MN's market opportunity, product line-up and execution record. Our Sector Perform rating (please see our note dated February 28, 2006) reflected valuation concerns as the stock approached $40. • Industry Peers Down, But Not As Much As MN: MN has traded at a premium multiple to its peers, largely justified by its higher growth record and outlook. Even after a steeper share price decline, on a GAAP basis MN trades at 27.6x C2007E GAAP EPS, compared to the peer avg of 21x. • Tax Situation Unduly Penalizes MN's GAAP EPS, And Complicates Comparisons: MN is shielded from paying cash taxes for several years, but must begin accounting for tax expenses in F2007 at 36%. On a pre-tax basis MN trades at 17.6x C2007E Cash EPS. Industry peers NICE and VRNT have 19.5% and 25% tax rates respectively, and average 14x Cash EPS on a pre-tax basis. • Revenue Growth Is Driver For Upside To Earnings Expectations: MN currently runs at near-optimal Gross Margins and OpEx, in our view. With 22% Operating Margins, incremental revenue growth is the key source for upside earnings revisions. We currently forecast 34% revenue growth into 2007. Each 2% increment would add ~$0.03 to EPS (e.g. 50% revenue growth should yield C2007E EPS of ~ $1.30, vs. $1.06 current forecast). • Valuation Getting Interesting, But Remaining Neutral For Now: We are comfortable accumulating positions in MN at these levels, though are reluctant to become aggressive buyers immediately. MN fundamentals and execution remain positive, though we see no immediate catalysts to reverse the recent trend. Valuation seems reasonable, though a deep value argument is difficult on GAAP earnings (which many investors screen). In short, we anticipate somewhat of a sideways drift in the near-term, and would wait before becoming aggressive buyers at this stage. • Valuation: Our target remains $40.00, based reflecting 25x C2007E cash EPS of $1.60. This multiple is in line with our expected growth rate for MN over the next 3-5 years. Viewed another way, the target reflects roughly 30x C2007E GAAP EPS, plus cash (including the effect of the tax shield). We rate MN Sector Perform, AAR with a $40.00 target. RBC Capital Markets March Networks April 6, 2006
08/3/2006
18:14
umalukka: i sold my holding of mnw today at £16.Looking at what analysts are saying about mnw price target i am tempted to reinvest in mnw.would like to know is there any more mnw out there in the market? I dont do much research as i am a full time working woman.I quite often pick up tips from advfn BB. Last one mnw i picked up from rogerl on BB here. Thanks.
12/2/2006
10:43
mitzis: Only because the share price has risen 270% since they recommended them Cam....it makes sense to lock in a good profit.
03/2/2006
07:58
william63: Look at the RNS's on DTK and look at it's financials. It is a similar business to MNW. I have just bought in. Doubt if we will see share price growth of MNW but it will be good. IMHO
25/1/2006
08:55
bangor: Wow - that is some recovery in share price over the last few days. Glad I didn't use a stop loss. Blue sky now.
11/1/2006
16:49
lordcoco: RBC raise target to C$37 Pinched from another board: As we enter 2006 we are rolling forward to C2007 as the basis of our MN target calculation. Our target increases to $37 (from $30) as we expect continued operational and share price momentum. Investment Opinion • Risk/Reward Proposition Remains Compelling, In Our View: MN has performed very well operationally over the past two years, with exceptional growth again this past quarter. The shares have also performed exceptionally well, though MN trades at multiples only slightly above peers despite its superior growth rate and 'pure play' status on Digital Video surveillance. • Strong Revenue Momentum Has Been Achieved Through Promising Wins: Large-scale deployments with banks, retailers and transportation companies spanning multiple years generate a solid backlog with clear visibility. With several large deals announced late in 2005, we expect enterprise deployments (in all 3 key verticals) to continue into 2006, with further progress in Europe. • Concern of Customer Concentration Should Subside Over Time: MN's largest customer still contributes to nearly half of the company's sales, which remains a primary area of concern. However we anticipate this exposure will decrease as mgmt strives to diversify its customer base. • Still Reasonably Valued On Stronger Growth Outlook: The 175% increase in MN shares from its $12 IPO price has been driven by outstanding execution and several increases in EPS estimates over the past several quarters. On the C2007 earnings outlook (which has increased successively over the past 4 quarters, MN trades at roughly 7% premium to peers at 22.5x C2007E EPS. However given MN's higher growth profile (69% CAGR for 2004-7E) and 'pure play' status in DV surveillance, we feel a slightly higher premium is warranted. • Valuation: We have rolled our valuation basis forward to C2007 and raised our price target accordingly. Our revised target price of $37.00 (from $30.00) reflects 25x C2007E EPS of $1.47 (previously 26x F2007E EPS of $1.16). This multiple is a 20% discount to the current premium for MN relative to peer companies on a C2006E basis, and corresponds to our expected EPS growth rate for MN over the next 3-5 years. We continue to rate March Networks Outperform.
15/8/2005
10:05
tillman: Please answer this for me: How often do the MM's not quote on line prices? The reason I ask is that I should have been stopped out of MNW recently but got an email from my broker saying the stop loss limit had not been activated. Enq's online showed the on line broker could not obtain a price. Tel enq's said the MM's sometimes do this and then you have to deal over the phone. I thought stop loss limits were pretty much fail safes in that once the limit was hit, the trade would be executed (I appreciate the price might be different from the limit price as the share price could have dropped sharply). Clearly this is not the case but how often does this tend to happen? I would very much appreciate your comments. Thankfully, I am still in MNW..esp pleased as my stop loss would have taken me out of what was the recent bottom in the share price!! CWR...Take a look. I have bought it today. DYOR but IMHO this is a promising one to look at. roger....are you in France? (disregard if it makes no sense) All the best. Tillman
March Networks share price data is direct from the London Stock Exchange
Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P:42 V: D:20160929 15:19:55