GEO Investing

As GeoInvesting has stated before, it at this point is not overly concerned about the decrease in profitability in B- SCADA INC. (OOTC:SCDA) growth cycle, since achieving a top line growth rate in excess of 20% is the key factor in the early stages of SaaS companies (from experience).  SCDA develops software products for the visualization and monitoring of real time data in heavy industry in the United States and internationally.

B-Scada SCDA reported Q1 2015 results:

  • Q1 2015 revenues of $496,144 vs Q1 2014 revenues of $335,722
  • Q1 2015 loss per share of $0.01 vs breakeven in Q1 2014

The company had previously set a target of 25% revenue growth for 2014-2015.  However, a large portion of growth was coming from customers in the oil and gas sector.  What is unclear to us is if these targets of 25% growth are still in tact, since management has yet to issue a press release but has stated in the Q that revenues from the technology and support segment are expected to decline over the course of the year as customers in the oil and gas industry have indicated they need to reduce expenditures.

Positives for Future Growth

There are some positives for future growth with the newly launched Status Enterprise product and new Spain subsidiary. Quotes from the Q:

  • Although Status Enterprise was released in January of 2014, our marketing campaigns were not fully launched until the spring of 2014. The sales cycle for these type systems is often nine months or more, as such, sales of Status Enterprise have just started to have an impact on our operations.
  • Revenues from our office in Spain have contributed to our revenue growth this quarter, but are not expected to be a significant contribution until 2016.

To see the remainder of SCDA coverage, please go here.

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