We coded MOBS as a GeoBargain and wrote our articleUndiscovered Software Play with SaaS Angle; B-Scada Ready to Impress Wall Street” on 4/9/2013 when the stock was trading at $0.21.  The company reported its fiscal 2013 annual results, posting record annual revenues and the fifth consecutive quarter of operating profit:

  • Revenues for fiscal 2013, as anticipated, far exceeded those for 2012, posting at $1.55 million for an increase of approximately 45%.
  • More than $214K of debt has been eliminated from the Balance Sheet as promissory and convertible notes were satisfied in 2013.

The company’s strong financial results and bullish management commentary are key highlights of fiscal 2013.  Another major takeaway that investors should note is the positive change in liquidity requirements.  In the 2013 10-K management commented:

“We believe that our cash on hand at October 31, 2013 and our revenue commitments will be sufficient to fund our operations for at least the next 12 months. We have signed significant licensing agreements and continue to market our products and services in accordance with our strategic business plan.”

In prior quarterly filings and previous year end filings the company stated:

“We believe that our cash on hand at October 31, 2012 and our revenue commitments will be sufficient to fund our operations for at least the next 12 months. We have signed significant licensing agreements and continue to market our products and services in accordance with our strategic business plan. We are also looking to raise additional capital through debt and/or equity financings. There is no assurance that the income generated from these and future agreements will meet our working capital requirements, or that we will be able to sign significant agreements in the future. There is also no assurance that we will be able to obtain additional capital in the amount or on terms acceptable to us.”

We believe that when investors take note of the liquidity change, their concerns about possible dilution should be alleviated.  Based on current EV/S of 6, shares are trading at the high end of other SaaS company comparables, but we still like the long-term picture and the company’s willingness to project strong growth through 2015.  Thus, MOBS remains one of our favorite long term bullish speculative holdings.