Pci-pal Share Discussion Threads

[adamb1978] 28/8/2024 06:44

If I move that £700k revenue from FY24 into FY25 in my excel, then EBITDA, net income and cash levels mentioned in the RNS are all where you would expect them to be. Really annoying to have that negative slant in what would otherwise be a very positive trading update.

Let's see what Mr Market says. A year or so ago we were in a 'sell first and ask questions later' environment. Hopefully the improved conditions, coupled with the recent sell off, might mean that the reaction today more reflects what is otherwise a decent update

[adamb1978] 28/8/2024 06:26

Well we now know.

Annoying that what was a decent year for them ends with them looking a bit careless.

Positives are that:
- the business continues to hvae very good momentum
- more routes to market than before
- EBITDA positive and cashflow positive reached
- SHould reach bottom line positive this year
- net cash

[sahara5] 27/8/2024 14:41

I spoke to Walbrook a couple weeks ago and they said that as far as they know the plan is still to issue an update.

[dr biotech] 27/8/2024 14:27

FWIW I contacted IR at one of the other companies that haven't released a TU this month and they just said they weren't going to have one this year (their results are due next month, somewhat earlier than here). They didn't really elaborate. Obv difference here is that they said they would, which adds to the intrigue.

[wrighna1] 27/8/2024 12:30

Bit of volume here today.

[adamb1978] 24/8/2024 19:09

Dr B
The odd things here about the TU are:

1) they've historically always issues a post yr end TU, and bar last year when they delayed it due to the court case, released it in mid/late July

2) they specifically told me and others that a TU would be coming out in mid/late July. Evidently something happened in early July to change their view and deviate from their usual post yr end update

Adam

[adamb1978] 24/8/2024 19:06

Hi Simon - apologies, was meant to say Sahara rather than yourself

[dr biotech] 24/8/2024 18:28

Eck didn’t give a TU this time last year either. So I wouldn’t read a lot into that.

The share price movement doesn’t really give off takeover vibes. Generally speaking shares drift when there is no news. I have a couple in the same situation of no update when expected and they have both underperformed.

[sahara5] 24/8/2024 17:45

My only point was that I wouldn't read anything into Eckoh having released a TU while in discussions with PE, as you had previously alluded to Simon.

[simon gordon] 24/8/2024 17:16

Hi Adam,

Is your post above a reply to Sahara's 1216 post?

[adamb1978] 24/8/2024 16:57

Hi SImon

Trading updates are indeed optional, though the problem for PCIP is that shareholders have become accustomed to that July TU, and a few of us were told by the company that one would be coming.

I agree with you that a PE fund or funds are probably talking to both. Shame really that LSE investors don't value these companies properly - makes them sitting ducks for funds.

Adam

[sahara5] 24/8/2024 16:12

Couple things re Eckoh...

1) They have not released any trading updates since the offer was made on July 12th. We were expecting PCIP's trading update around this time - entirely possible (I think likely) that the PE firms are talking to both, so PCIP may well have received offers at this time.

2) I may be wrong on this but I believe trading updates are somewhat optional. However full and half year results are not. So, it is plausible for a bidder to request that PCIP does not release a TU, but would not have been plausible for a bidder to ask Eckoh to not release its results in June.

[simon gordon] 24/8/2024 11:20

PCIP partner 8x8 going well...

CX Today - 22/8/24

8×8 Finds Its CCaaS Groove in the Midmarket, Sees Deals Spike in the Segment

A 35 percent uptick in CCaaS deals with midmarket enterprises enthuses 8x8 as the vendor seeks to reinvigorate its revenue growth

8×8 has announced a 35 percent year-over-year (YoY) spike in CCaaS deals with midmarket enterprises that have 250 contact center agents or more.

Additionally, the vendor hiked its total contact center customers by nine percent while the total number of agents leveraging the 8×8 Contact Center is up eight percent YoY.

The news comes after 8×8 made the switch last year to lead with CCaaS, not UCaaS, bringing on board the likes of evangelist Justin Robbins to help navigate that switch.

Now, 8×8 appears to have found its groove in the midmarket, a segment underserved over the years by many CCaaS vendors.

Continued....



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HMRC moving from On-Prem to the Cloud?

Accountancy Daily - 23/8/24

HMRC plans to replace contact centre phone system

HMRC is taking the first steps to upgrade and modernise its legacy call centre phone system with an initial early engagement exercise with a selection of CCaaS providers due to close shortly

The initial phase is a soft review of a number of suppliers for a new HMRC contact centre as a service (CCaaS) solution to replace the legacy system currently in use.

The procurement process is set to kick off in early 2025.

HMRC stressed: ‘This early-stage, informal engagement will support a greater understanding of capable suppliers, test assumptions and share early draft specifications for discussion.’

The government contract list shows that HMRC has put out an invitation to a number of suppliers to respond to an ‘early engagement’ sounding-out exercise about possible options for a new system. This includes shared-business telephone network services, IP telephone services and electronic message and information services providers.

It is looking for support for HMRC’s development of a single omni channel, contact centre as a service (CCaaS) solution to replace current legacy services.

Continued....

[simon gordon] 24/8/2024 07:32

It appears that ECK has thrown in the towel and wants to rescue some capital for shareholders. They have the balance sheet to be more dynamic but maybe the CEO wants to park on the beach or sail the world. If a takeover doesn't go through they could become a zombie and require a change of CEO to re-energise the company. He's been in place since 2006 and owns 2.5%, plus 3.5m options.

It's not going for much of a premium - on 15th December 2021, they raised £31m at 54p to buy Syntec.

The company stated they’ve been in discussions since May, and during that period they’ve issued a TU and Prelims.

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Marketing strategy powers on in the States:





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Five9 - 21/8/24

For those that had yet to deploy AI, there were mixed views about the volume of anticipated staff reductions. These views align with a survey by Gartner earlier in 2024 where the advice was to invest in AI to enable, not replace, staff. However, where AI had been deployed, there was a notable increase in the higher volume of staff reductions anticipated. More than 40% of customers indicated they expected their headcount reductions to be greater than 16%.

At face value, this reduction in anticipated staff numbers could feel concerning. But we must view it against the backdrop of staff churn in customer service, which is currently running in the 36% to 38% range. We believe the current turnover rate will allow for staff reductions through natural attrition, avoiding the need for layoffs. Even so, customer service leaders should communicate the introduction of AI to staff with particular care for this concern.



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Salesforce - 22/8/24

Chatbots give way to copilots

Long before emerging large language models (LLMs) and generative AI spurred serious business and even consumer interest in artificial intelligence, many of us were already interacting with rudimentary AI chatbots without even knowing it. These bots were all around us, handling simple, predefined tasks like answering common FAQs or recommending products based on a shopper’s history. Companies have actively used them to deliver better customer experiences more efficiently and cost-effectively. Salesforce Einstein Bots, for example, are used by more than 3,000 customers and handle around 65 million sessions per month.

Heathrow Airport has used Einstein chatbots to offer round-the-clock support, answering 4,000 questions a month and helping cut call service volumes by 27%. Heathrow has seen a 450% increase in live chat usage since it launched in May 2023, freeing up agents’ time and improving efficiency. And today, Heathrow is seeing around 40- to 60-second quicker per-contact interactions in the call centers with Einstein chatbots.

The rise of agentic systems

For those things, you need agentic systems, which can be thought of as trusted digital colleagues as opposed to digital assistants.

An advanced form of AI, they can perform higher-order planning, reasoning, and orchestration without needing much in the way of human handholding. Unlike traditional software programs that follow predefined rules, autonomous AI agents not only improve productivity but augment employees with new skills and abilities, building deeper customer relationships that span every interaction and deliver higher margins by fully automating routine tasks. They also interact with human colleagues and customers in human-like ways.

For example, Salesforce recently announced two new fully autonomous sales agents to help scale and train sales teams. Built on the new Einstein 1 Agentforce Platform, Einstein SDR Agent autonomously engages with inbound leads in natural language to answer questions, handle objections, and book meetings for human sellers. Einstein Sales Coach Agent, meanwhile, autonomously engages in role-plays with sellers, simulating a buyer during discovery, pitch, or negotiation calls.

[adamb1978] 24/8/2024 07:15

Hi SaharaCertainly agree that they would have looked at PCIP at the same time as ECK and would have been surprising if they'd concluded that ECK was better value. Supports the hypothesis about why the TU was pulled.Adam

[sahara5] 23/8/2024 14:20

There is zero chance that the parties negotiating with Eckoh are not also negotiating with PCI-Pal.

[adamb1978] 22/8/2024 10:51

Thanks Simon. Interesting re Eckoh. 3.5x revenue despite being much slower growth than PCIP. Shows how nonsensical the current 2x revenue multiple is.

[simon gordon] 22/8/2024 08:17

Tech Market View - 22/8/24

Zoom ups forecast on growth in large accounts

Zoom Video communications reported revenue was up 2.1% (2.4% in constant currency) in its second quarter results out yesterday to $1,162.5m, of which Enterprise revenue was $682.8m, up 3.5% YoY, and Online revenue was $479.7m, flat on Q2 a year ago.

Zoom founder, and CEO Eric Yuan attributed growth to “strength in large accounts, with customers contributing more than $100,000 in trailing 12 months revenue increasing by 7.1% YoY, and resilience in the Online business, with Online average monthly churn reaching its lowest ever rate”. In particular, Zoom Contact Center, the company's ‘omnichannel platform’ which includes its AI Companion as well as customer experience capabilities such as AI Expert Assist, workforce management, quality management, virtual agent, and support, secured several high-profile clients, including its largest single-order deal to date in the second quarter.

The company’s share price has ticked up (up 3% in the extended trading yesterday) with Zoom raising its annual revenue forecast driven by the demand for its collaboration tools deployed in hybrid work models, and also said Kelly Steckelberg the company CFO is to step down. The company now expects fiscal 2025 revenue to be between $4.63bn and $4.64bn, compared with the $4.61bn and $4.62bn forecast previously.

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ECK - 22/8/24

Discussions with Private Equity Investor

Eckoh notes the recent share price movement over the last four trading days. Late last year and based on the Board's belief that the share price did not reflect the fundamental value of the business, the Company began to consider alternative options to realise value for shareholders. Subsequently, the Board appointed Stifel and Singer Capital Markets in March 2024 as financial advisers in order to determine the value that could be achieved in the event of a sale process and to initiate discussions on behalf of Eckoh.

Today the Board can confirm that, following a period of discussions and negotiations with multiple parties regarding a potential sale of the Company since May 2024, the Company received on 12th July 2024 a highly conditional, non-binding revised indicative offer from a private equity investor (the "Potential Offeror") of 54p per Eckoh share. Discussions with other parties remain ongoing.

It is important to note that while due diligence is progressing, there can be no certainty at this time whether any offer will be made, nor as to the terms of any such offer.

The Takeover Panel Executive has granted a dispensation from the requirement of Rules 2.4(a) and (b) of the Takeover Code such that Eckoh is not required to identify in this announcement any potential offeror with which the Company is in talks, or from which an approach has been received, unless that potential offeror has been specifically identified in any rumour or speculation.

As a consequence of this announcement, an "Offer Period" has now commenced in respect of Eckoh in accordance with the rules of the Code. The attention of Eckoh shareholders is drawn to the requirements of Rule 8 of the Code, which are summarised below.

This announcement has been made without the consent of the Potential Offeror or any other party that the Company is in talks with.

A further announcement will be made if and when appropriate.

[powlert] 19/8/2024 21:34

Quite heavy volume here the last week, interesting to see the share price not moving much.

I've suspected for a little while that there is a large seller out there. Encouraging that it is being met by broadly equivalent demand.

[wjccghcc] 16/8/2024 07:04

It does look like there were some clumsy sells in a number of smallcaps yesterday - ANP/EAH/SPSY/PCIP were the ones I noticed.

[zipstuck] 16/8/2024 06:55

hoping this was a badly handled probate or similar sale.I have faith in the company. Similar in SPSY

[adamb1978] 15/8/2024 19:37

Just because the TU might well have said:

- continued momentum in the US - probably another 40%+ growth year there
- further investments in the US to capture momentum (they were hiring a new head of marketing and head of product marketing there)
- maybe more narrative about their zoom partnership
- something about their product launches which were planned for H2 this FY
- break-even reached (key point for LSE investors)
- reasonable cash balance (litigation proceeds, cash raised from capital raising)

...yet they were only trading on something like 2.5x ARR. Reasonable possibility that it could have pushed the price up and investor expectations up for where they'd sell

[dr biotech] 15/8/2024 19:30

A few large sells reported late. I don't see why any purchaser would stop them issuing a TU - unless its seen as a waste of management time.

[hastings] 15/8/2024 19:20

Fair enough, I guess we will hear in due course.