Wandisco Share Discussion Threads

[owenski] 21/11/2019 11:15

The IBM tie up made for a good read at the time, being as they were using IBM's pool of 3000 sales people - wonderful low cost route to market penetration - but that appears to have come to nought, reading between the lines, it appeared that IBM didn't really know how to use the product. IBM was at first an encouraging case study because they appeared alongside WAND at presentations speaking about the deal sizes IBM were involved in and the implication was that WAND would ride those coat tails. But it just has not happened.

I also suspect the product is also too specialised in technical operation for the average IT related worker to use. This is likely why it's having to be engineered into the AZURE system, I'd suggest they need to translate the tech into as close to a click and launch automated model as possible, this will facilitate ease of use and thus wider uptake adoption.

AZURE will be key here, but if that still doesn't translate into meaningful revenue, then it suggests that as great as the tech might be, it's a dud business.

Pushing meaningful revenue expectation out to 2023 smells of uncertainty and kicking the can down the road in the hope that it'll all be ok by then.

[owenski] 21/11/2019 11:04

An interesting question for this 'must have or we'll all die' technology is -

Being as cloud uptake has been occurring for a few years, and as that uptake has been accelerating, how are they all managing without WAND in the first place, one wonders whether the product is as necessary as they say it is.

[tickboo] 21/11/2019 10:53

I think he'll struggle getting one away with IIs at all given the last 2 raises (to accelerate growth) were at circa 5.50 and revenues have stagnated. Obviously the Azure deal is massive but I'm shocked the house analyst said it would be the biggest contributor by 2023, how about 2021 latest given how poorly revenue has been. I'd hope it would contribute at least $10m 2020. If they go into 2020 with around $10m left in cash I hope with the pipeline and costs under control they feel comfortable not raising. We'll see.

[owenski] 21/11/2019 10:42

I doubt he'll be able to mug the market for another 10% @ premium raise when they pass the begging bowl round again.

[tickboo] 21/11/2019 10:00

Anyone know when David Richards is up for re-election?

[tickboo] 20/11/2019 15:39

Also I'm not sure any IIs would wanna invest as the last 2 raises are well down (around 5.50!) so it's have to be retail which would be tricky so yeah they have to accelerate grow try and revenue!

[tickboo] 20/11/2019 15:31

Let's say wand does 250% more H2 than H1 it'll be $15m in H2 then if costs are broadly the same they should have around $10m left in cash (I think). They're also $5m in debt and they raised before with less money in bank. That said, if they expect Azure to hit the ground running and generate quick cash they may not need to but it'll be tight I'd imagine.

[redrag1] 20/11/2019 15:23

Again, I truly don't think a cap raise is going to be needed. The company seems to be more than aware of what the share price is saying but the mood music coming out to the analyst to whom i do speak remains very optimistic with no need to change forecasts etc...but currently I am definitely wrong and the bears / pessimists right!

[tickboo] 20/11/2019 15:06

"Africa is clearly a growth region and I see further potential in leveraging our embedded Azure offering which we continue to expect will be available and revenue generating in early 2020, if not even earlier in this current 2019 year."

[redface] 20/11/2019 15:01

Azure embedded on 8th Nov and this is the first announced contract-within 2 weeks. Hopefully more on the way.

[owenski] 20/11/2019 14:19

$1m per annum, would sound good if the company was valued at 20 - 30m $

but not at an M.Cap of £160m

$1m per annum equates to £770k.... Reality check, lol

[tickboo] 20/11/2019 12:21

Well a decent RNS although given our poor growth in the UK and US I can't see how the $3m over 3 years will come to much more in the next year or so at least. Who knows maybe Azure will be the driver. The question I have is when will they need the next raise. They had $17.9m cash left but made a loss of $16.5m in H1 so how much cash will they have going into 2020 and when will they look to raise cash?

[tickboo] 20/11/2019 11:40

Yep not looking good, question is how much will this miss FY forecast by? If they hit $20m there'll still look overvalued albeit next year with Azure should look a lot better and I'd hope might produce more than all of this year but who knows. I see the department for transport moved to Google's cloud in less than a year

[jackdaw4243] 19/11/2019 18:44

Oh Dear, sinking ship comes to mind.

[tickboo] 19/11/2019 13:14

A mere $17m last year

[tickboo] 19/11/2019 13:09

You'd hope it's the biggest revenue driver from next year given all the rest hit a mere $27m last year and let's hope for $20m this year. Wand has missed every forecast and then misses them once downgraded. I wanna buy more but fear we've burnt too much cash this year and will need to raise and I doubt the IIs have the stomach for it. That said now fusion will be embedded in Azure maybe that will win them over as wand may finally be in a home straight of sorts.

[redrag1] 19/11/2019 12:28

Stifel our again on Wand - re MSFTand Azure. F’cast Azure largest revenue driver for MSFT by 2023. Read thru for Dtifel for Wand has massive implications given seem joined at the hip. George the analyst tempted to raise forecasts ...fingers crossed!

[knighttokingprawn] 18/11/2019 16:52

Tick

Think reality is that nobody knows where the Q4 will close , no trader worth his salt though goes long on a company needing to close such a backend laoded full year... it should be in the stock by now that the 2H has no visibility ... the key issue is by how much ( if at all they miss) and then by extension when do they need to raise .... the issue for Wand is that there are likley only two channels in the world that have the reach to surface the usecases that require the product... Azure and Aws ... IBM are definately not at the races in cloud .. the good news is that Wand has embedded intonthe Azure stack.. no surprise that this has taken so much longer than advertised or expected.... its hard to convey what a big deal this is ... but to say that Azure has gone to the engineering effort to embed the code into the stack without stating the bleeding obvious ... is a huge deal.... doesnt mean client will turn on the feature.... but the optionailty here is huge...

[tickboo] 18/11/2019 09:55

Edison is paid for so signed off by the client (wand). That tells me that they'll miss $26m FY although I think that's pretty obvious. The question is, where is the bottom?

[owenski] 18/11/2019 09:30

Isn't Edison client paid research?

Share price gives the real verdict, unfortunately, WAND just isn't delivering.

[jackdaw4243] 18/11/2019 09:06

I was told by my sailing mate (he with 30,000 shares) that the Edison is written for them, true or false anyone.

[redrag1] 17/11/2019 09:08

I’m in your camp Tick - it’s been a helluva story and sadly I didn’t sell enough when it got to £11 after the Scandinavian fund bought 5% in an illiquid market!
I was talking to the Stifel analyst the other day and I think revenues are just a matter of time. However we’ve said that a few times!!
Personally think it’s IP is non-pareil and it’s valuation is just chicken feed to a major for whom access to this tech must be of interest given the boom in cloud spending. So I’m a very patient and somewhat out the money holder waiting for IBM and it’s £10 bid!!

[tickboo] 16/11/2019 12:26

It's odd, I mean $2m revenue in Q2 is pathetic and they have to hit $16m H2 to hit downgraded FY forecast and as the Edison report says we haven't had any contact news for a good while.The tech seems fantastic, the fact petabytes can be sent uninterrupted to the cloud in 3 minutes versus several weeks with Cloudera illustrates how great the tech is and with many cos going multi-cloud it's more than a little odd wand isn't generating decent revenue. Next year should be a lot better with the Azure deal but what has IBM et al been doing?Let's say this year they manage £17m turnover ($22m) that's still massively loss making so £170m market cap looks toppy. That said I still perhaps naively believe in the story and will more than likely buy more before year end.

[blah blah] 16/11/2019 12:20

I would think there is every chance that Trump weighed in to take the jedi contract away from Amazon. He seems to be either too brazen or stupid to help himself, he will have told someone to make sure Bezos didn't get the deal and eventually the details will come out, as they are starting to in the Ukraine case. This will run and run.

[owenski] 16/11/2019 11:54

"bringing the Pentagon’s 500 separate cloud-based systems into one umbrella network."

Indeed, the JEDI contract isn't an invention of the 'new', they already are using cloud based systems.

Question is, cloud uptake is already here and growing, so why isn't WAND's penetration at least mirroring some of this growth.

Clever tech, but is it the business they say it is?