There haven’t been a lot of bright spots in owning bulletin board company Nighthawk Systems Inc. (NIHK) lately, at least not until this week. We’ve had to watch shares slide lower (or continue to watch them slide lower) since 2007 despite a much better 2008. Maybe, just maybe, the latest round of news will start to pull NIHK out if its funk….. though at 2 cents, how much more downside is there to go?
Enough rant – on with 2008′s full year numbers:
- Revenue, up to $3.3 million from $1.7 million…almost a double
- Gross profit, up to $889,150 (from 23% to 27%)
- EBITDA improved from a loss of -$2.1 million to ‘only’ -$1.2 million
- The cash (operating) loss fell from -$2.1 million to a loss of $925K
- Net loss came in at $4.1 million versus $3.3 million a year earlier. Subtracting out a one-time impairment charge though, the net loss would have been $2.5 million.
That’s it – the numbers don’t lie. Nighthawk isn’t where anybody wants ‘em to be, but they’re at least not heading in the wrong direction.
I don’t know if profitablity is in the cards for 2009, though I do get the feeling investor patience is running thin. The company said 2009′s pace already fell from the pace set in 200, though a deal with ESPN could be expanded. Talk about a company on the fence.
What say you?
What are the chances that this company will get bought out and at what price do you think it would happen at? Also, I don’t see them lasting past this summer with no new significant order, either through Itron or something with the set-tops.
Editor: I don’t think there’s any chance they will get bought out at this time. If business really picks up with Itron, it’s possible. Years ago, I covered a company extensively that has wireless meter reading technology, and they were eventually bought out by Itron. However, they had the sales really improving before it happened. Right now, Itron is showing their products, but I’m not aware of any huge sales coming out of it yet.
Nighthawk seems to be turning the corner but do you think the amount of shares outstanding is hurting this company 138 mil. when will there be a reverse ? it seems most times i see a small company with that many shares outstanding it is very difficult to fight its way back up. its eather a great time to buy or a great time to sell??
Editor: I would like to see sales moving in a far more positive direction before suggesting it’s time to buy. However, they are moving slightly in the right direction, so I don’t believe it’s time to sell yet. It’s 138 million- that’s the bad news. The good new is that it hasn’t changed much in the last few quarters. At a lousy 2 cents, the market is saying the company is worth about $2.5 million. It wouldn’t take all that much for the market to say it’s worth a lot more.
Hi what do you mean Itron is showing their product can you please explain thanks. Who would Itron be showing it to and could that mean a big sale is in the works? If Itron used NIHK product in their meters that would be huge for NIHK and its sales right?
Editor: Itron is marketing the NIHK power disconnect technology as part of its overall package on the lower end. It also has a much higher end, much more expensive version provided by another vendor. And yes- a big sale could happen, but I couldn’t say when or how much as I simply don’t know.
Your comments on their first quarter results.
Editor: Pretty bad, and no communication with the company despite promises. – I’m going to drop it after all these years.