Fusionex Share Discussion Threads

[j777j] 15/3/2017 10:40

Agree,very bizarre however it does lead to opportunities for investors.


They haven't even had the analyst meeting yet.

[connor23] 15/3/2017 10:40

Agree. I'm a buyer today on what looks strong top line growth to come and a bullish forward looking statement from the company. Regarding the accounting, this is no different to WAND, who were happy to capitalise their development costs, as are many software companies. How aggressive you think this might be is subjective I guess, but I am comfortable with it here.

[galeforce1] 15/3/2017 10:34

With FXI it's more sensible focus on the top line rather than the bottom line. This is a growth business, investing in its product and growing its client base.

What matters here isn't the trailing p/e but the expanding client-base and the successful product winning customers all over Asia.

UK investors have a tendency to be too short-termist, IMV. The profits and divis will come in due course.

[opodio] 15/3/2017 10:26

maybe something nasty will emerge on the broker note rather than on the RNS

[j777j] 15/3/2017 10:19

Recurring revenues now at 60% of total and climbing rapidly.


Giant customers more than doubled in a year from 36 to 115.

Furthermore they booked another 48 customers in the first four months of this year.

Subscription revenue has doubled in a year representing 37% of sales up from 22%.

Over 90% client retention.

This is a fast growing company operating in a rapidly expanding space.

[henchard] 15/3/2017 09:58

Development costs on intangible assets 26,448,903
Amortisation of intangible assets 7,716,485

So, a net boost to the P&L of 18,732,418

This for a company reporting a PBT of 4,551,494

If development costs were expensed instead of capitalised we'd be looking not at a profit but at a heavy loss for the year.

[muffster] 15/3/2017 09:57

What do people have as a PE ratio on this. I must be reading it wrong as it. Looks like a PE of 60

[j777j] 15/3/2017 09:55

Revenues in UK and Europe were RM 13.5 million. Also maybe had sterling deposits or value of contracts were currency sensitive.

[galeforce1] 15/3/2017 09:54

That's a bit puzzling, I agree.

I assume that the £10m odd they raised in Oct 2015 was sitting in GBP, and got devalued post-June 23rd 2016.

Hopefully a once-off event.

[esther1975] 15/3/2017 09:51

"Unfortunately, however, the unexpected fall in the value of the Pound Sterling during the year did have an adverse impact on our bottom line, whereas in previous years the impact of currency fluctuations has been positive."

Am i missing something here. Most companies who report in foreign currency benefit from weak pound?

[j777j] 15/3/2017 09:44

15/3/17

Peel Hunt Buy 220p target price Reiterates 46% upside.



Will be interesting to see what the new broker has to say.

[saj3] 15/3/2017 09:35

market makers playing as usual!

[cumnor] 15/3/2017 09:31

Big data is where its at and FXI seems to be in right space, esp with number of customers growing. Will be taken out by one of the large software companies before it gets a chance to grow. imo

[opodio] 15/3/2017 09:11

Cheers rupe
So that doesn't sound very positive if they're capitalising 18m more than the year before
I might be a fool but if they wrote off 18m the results would look nasty

[rupe1958] 15/3/2017 08:49

opodio -

the rise in Goodwill by 18.6m MR (GBP 3.5m approx) reflects the investment in R&D

[billbyrne] 15/3/2017 07:59

Continuing the impressive addition of customers in the first half of the current year.

o Continuing sales momentum with additional 48 customers in first four months of the financial year to 31 January 2017 (163 total cumulative GIANT customers as at 31 January 2017)

[opodio] 15/3/2017 07:51

Why is intangibles goin up like billio

[j777j] 15/3/2017 07:45

Wandisco revs £9.34 million.Market cap £171 million 18x revenues and loss making



Fusionex revs £17 million.Market cap £72 million. 4x revenues and profitable.


A similar valuation to Wandisco would equate to a share price of 700p.




FXI seems vastly undervalued for a profitable tech co growing revenues in the 20's.

Cash collection and receivables all looking much better.


Let's hope the newly appointed Nomad can bring greater visibility to the company.


GLA.

[broadwood] 15/3/2017 07:43

- Fusionex's gross profits increased 26% to RM74.0m in the year to the end of September and increasing GIANT sales resulted in a 23% rise in revenue to RM94.6m.

The group said EBITDA was significantly ahead of expectations, with RM15.4m achieved (RM35.0m: 2015), despite significant planned investments in marketing, product development and geographical expansion.

Chief executive Ivan Teh said: "We are delighted by the progress made in 2016. Fusionex has made excellent strategic progress following the major enhancements to GIANT in 2016, which has enabled the company to expand to new market segments and increase our customers worldwide.

"This progress has underpinned our strengthening financial and market position, as well as demonstrated that our focused investment in research & development and marketing is enabling Fusionex to accelerate growth and leverage the Big Data opportunity.

"With the impressive momentum continuing in the first four months of the year, a solid pipeline of new customers and the launch of our market-leading GIANT 2017 product on the horizon, the company is excited and confident in its ability to realise its significant growth opportunity."

[galeforce1] 15/3/2017 07:36

This all looks good to me.

Revenues at 94.6m MR (GBP 17.5) is exactly where I thought it would be.

Net cash at 94.2m MR (GBP 17.4) is also roughly what I had pencilled in. They used approx 30m MR (GBP 5.5m) in H2 in increased marketing and R&D. Net cash was 124.9m MR at the end of H1.

The really positive surprise is the new customers number in H2 at 48. That's an impressive performance! We had 68 customers at the end of H1, so that's a significant jump, and they are moving rapidly to a subscription-based, recurring revenue model.

The negatives are a tiny net profit and no mention anywhere (unless I've missed it) of a dividend. But a small divi from a growth company never makes a whole lot of sense IMO, so best ignored. The important thing is that the product and top line is expanding fast.

Hope we'll see a good day here.

[saj3] 15/3/2017 07:28

Giant 2017 is going to be a game changer! I like that statement

[broadwood] 15/3/2017 07:21

With the impressive momentum continuing in the first four months of the year, a solid pipeline of new customers and the launch of our market-leading GIANT 2017 product on the horizon, the Company is excited and confident in its ability to realise its significant growth opportunity

[chadders] 15/3/2017 07:20

Could it have been any better? One hell of an announcement. All the woes are behind them it seems, excellent trading year and a very positive outlook. Congratulations to FXI management

[smallcapinvestor1] 15/3/2017 07:18

Great great results and such a positive tone. These guys are delivering year after year and eventually the market will wake up to the opportunity.

[pickledcabbage] 15/3/2017 07:10

Phew! All looks good, if not better than I'd hoped!