The big number that really matters is cash sales and they rose 146% from last quarter to $2.46 million! That’s 146% over Q3 2014, not even a comparison to last year! That’s more than 75% of Q4’s $3.25 million revenue.
They also say that there is another $1.8 million of contracts signed in Q4 that are not yet billed and not yet included in revenue which will hit revenue in early 2015. I’m guessing that a larger percentage of those are also cash contracts, but unless someone asks this in the earnings call (which probably won’t be until march), we won’t know for sure until we start to see some quarterly 2015 results later in the year.
I just bought a ton of shares under 45 cents.
The big thing coming up in subsequent months/quarters will be - are they able to collect on their big cash sales in Q1 2015?
I guess the big question will be, why did they do the equity raise just last week if they have all of these cash sales now. Well I don’t know exactly what their payment terms are, but my guess is the customers get at least 30-60 days to pay and given that AEYE wasn’t exactly flush with cash recently, I’m not surprised that they needed something more to get them over the hump until the significant customer payments start coming in.
Although this result is better than even my most optimistic expectations for cash revenue, and I did just increase my stake significantly, remember that this is still the riskiest company I’ve ever owned and there is still a real risk this stock could go to zero if they can’t collect on these sales and/or future cash sales don’t continue to grow.
We’ll see, but wow, this is impressive. I’m partially really excited about the results and partially really excited I was able to buy as much more as I was below 45c
after a quick re-read of the PR, I misspoke on one or two things above, but the results still blow away anything I expected.
I believe they are saying that $1m of the $3.25m of Q4 revenue will be cash sales. However, of the $4.7m of agreements booked/signed in Q4, some of which won’t be revenue until Q1 2015, $2.46 m of them were cash contracts, so about 52% of the deals signed, which is still fantastic.
That means that the majority of the deals signed at the very end of 2014 which they still are still performing on, were cash sales, indicating a trend of % cash sales upward even during Q4 itself.
They reiterate that they expect to be operating cash flow postive in Q1. Given the types of customers they’ve signed recently (several of which are governmental), I would think the creditworthiness is pretty high. They specifically say they anticipate operating receipts of cash payments of over $2 million at the beginning of Q1 2015, which indicates they expect large payments coming in early in the quarter in January most likely.
I just bought a sizable portion at .4499. Just did the math and it’s 0.1% of my portfolio so if it goes to 0 I’ll take the loss without losing sleep over it, if it takes off then all the power.
partially really excited I was able to buy as much more as I was below 45c
No thank you!!! For taking all my shares last week! Something doesn’t smell right about this company. I could be wrong but not willing to take the chance.
No thank you!!! For taking all my shares last week!
I didn’t actually take you shares last week since I bought these this morning, but your point is valid and I don’t blame anyone for being skeptical here. There’s definitely a lot that can go wrong in the near future.
I apologize if this post wastes anyone time, but I just saw someone sell 78,200 shares of AEYE in 1 second! One guy manipulated the stock price from .49 to .34!
Thats like a 30% decline in a split second?! Now 2 minutes later its back above .45! This is crazy.
If I wanted to do some gambling, instead of buying AEYE, I’d bet on the Ducks (my Alma Mater) in tonight’s Championship game!
Good luck to the ducks
Tho betting on the ducks risks losing 100% for a maximum gain of doubling your money. With AEYE you could lose 100% but you can potentially make 10 or 20 times your investment if this plays out perfectly over the next couple of years. imo investing in a company as risky as AEYE wouldn’t be worth it if the max upside was 100% but that’s not the case here.
When I buy naked call options I consider it gambling. Buying AEYE is risky for sure but especially after seeing today’s release, I would not consider it gambling.
Wow AEYE has had one purchase of 113 shares today since market open, it’s an exciting chart to watch in real time. 113 is an odd number, yet the stock has soared 2 cents on the day or 3.85% to .54.
Can someone explain how such low volume swayed the stock like this? There can’t only be several thousands shares out there or I’d own the company and I’m sitting tight.
There is a critical article on Seeking Alpha today (for which much of the material was already covered on this board, about profit being mostly non-cash, researched mostly by Mekong22 if memory serves). Since publishing the price is down from .54 to .48.
Can someone explain how such low volume swayed the stock like this?
I really can’t tell whether you are asking a serious question or just being sarcastic. On the off chance it is the former…
The price you see is nothing more than the price of the last transaction. So it was set by one transaction of 113 shares, a transaction between just two people, one selling and one buying. The 70.60M shares that were not traded are being “valued” based on nothing but that one transaction. Which is why lightly traded stocks - low liquidity - are so unpredictable.