NJHowie
10 years ago
Q3 was the pivot point
"We implemented a number of financial and operational initiatives in August 2014, with many of them starting to take hold," said Brad Eisenstein, AllDigital's Chief Financial Officer and Chief Operating Officer. "Our goal is to achieve cash flow profitability in 2015."
AllDigital anticipates that through the growth and expansion of its patented technology, tighter cost controls and continuing efficiencies in its own development methodologies, direct costs should decrease and gross profit should improve [in the near and long-term].
"The third quarter looks to be a pivot point for our company, and I'm proud of what we have accomplished," said Michael Linos, AllDigital's CEO and President. "That said, there is plenty of work to be done, including increasing our revenues. I am very excited about our recent acquisition of the Brevity ultrafast transcode/transport technology and the early demand indications for our AllDigital Brevity product. This could be a real game changer for our company and our customers."
tradehax
10 years ago
Cash decreased $1,161,626 from $1,300,932 at December 31, 2013 to $139,306 at September 30, 2014, due primarily to the net cash used in operating activities
tradehax
10 years ago
Net sales decreased by $235,641, or 8% in the first nine months of 2014 compared to the first nine months of 2013 due to net declines in monthly recurring and nonrecurring revenue of $325,608 and $141,870, respectively, offset by an $231,837 net increase in recognized deferred revenue. The net decline in recurring revenue resulted from a decrease in recurring monthly maintenance and support contracts with new and existing customers.
botlow
10 years ago
That's great, thanks for the insight. I think from a supply and demand standpoint, this one is very ripe for a run. Much like the vast majority of reverse merger deals, this one went through that period shaking out all the loose stock over a year or so where it seemed like there was unlimited supply. Not like the bid/volume was high, there were just always blocks of stock on the offer. That seems to be abating somewhat and I think they have worked through that brutal period of transition where there was obviously a massive blowout internally amongst management in early 2014. But as you said, I too believe they have some proprietary technology that is of value and they are in a very lucrative space. I have been impressed as well that they continue to fund the company on terms that display confidence in the end potential here, otherwise they would be taking toxic money on their way out the door. The financing terms have been, and continue to be, very favorable to the company. Those writing checks continue to pay up to invest in this company, both internal guys and wealthy investors as well, which is huge. Outside guys like us have to triangulate our opinions, and this one seems to line up well from a several different angles. I think we have a good chance to see it play out well.
NJHowie
10 years ago
Hi botlow.
All of my investing is initiated on insider trading and then doing research, looking at the fundamentals, and going through the filings. So I don't just go buying anything just because the CEO goes and buys some shares.
I first learned of ADGL back in August when one of the reports I use identified it based on prior insider purchases and then obviously the shares fell. Going through all of the filings, I liked what I saw. The obvious issues were the unexpected events last year, and whether the company had sufficient access to funds to keep things going. As I dug into the filings and the folks running the show I became very comfortable with it. As coincidental as it was, within minutes of when I purchased my first batch of shares, company announced CEO passed away. I just kept buying from that point.
I am not an expert in the industry, however I have good familiarity and have a technical background. I am nicely invested in CCUR which is in a very similar part of the market. They are one company I can see that would be a great fit for ADGL and potentially buying them. I also have a position in SOFO - another part of the video sector. I think that during 2015 and beyond, video is definitely the place to be - there have been great strides and things are still accelerating at this point.
My belief is that any purchases of ADGL shares below 15 cents is just free profit. You've probably also looked at the SEC filings surrounding the financing provided by management - their notes are convertible to common stock at 15 cents/share...just like their stock options. If they don't get the stock back to at least 15 cents, then they won't get to convert and they'll just get back their money with the low interest rates and their options will be worthless. Reviewing the background of these guys, and seeing the history of their last success, I am absolutely certain they have similar plans here - they are looking for a homerun - they want to be able to convert all those notes and their options at 15 cents/share. I like when I can buy below the option strike price for management - because they are going to work their tails off to get the stock price up over their exercise price.
Anyhow, I think that there are good things on the near-term as well as longer-term horizon for ADGL - it's just a matter of patience. Based on comments from the CEO, I think we should be seeing bottom line profitability very soon - if not this quarter, certainly next quarter. I think once they post a profit, no matter how small, it's going to be bringing many more investors to the table because they will be more comfortable with the company at that point.
NJHowie
10 years ago
It's time to be long or get long
Momentum in the business is just beginning to come around after an extraordinarily difficult past 9 months due to numerous unforeseen circumstances. With a good portion of the staff abruptly walking off the job earlier in the year and then the (young) CEO unexpectedly dying, these were obviously major shocks.
However, reading the press releases, reviewing the SEC filings, and understanding that sufficient financing is in place going forward, ADGL is likely going to be posting bottom line profits through 2015.
The shares are tremendously undervalued for what they have, the client base, and the opportunity going forward.
There is little reason the shares should not be trading somewhere closer to 30 cents or 50 cents today. Year end 2015 it would not be surprising to see shares back on the 75 cent to $1.00 range.
With shares at the current level and extremely cheap, I'm very surprised that other players have not approached company to scoop them up or make a strategic investment.
This management team is experienced and likely will not be settling for anything under $1.00 should an acquirer come along. My belief is that they're looking to grow the revenues probably 5 or 10 fold in the coming years before accepting a buyout in the $3.00 to $5.00 range...if not higher.
MR. McBALL$
11 years ago
AllDigital Inc. Earns Recognition From Streaming Media Magazine
11:15 AM ET 10/8/13 | GlobeNewswire
AllDigital Inc., (OTCBB:ADGL), a leader in unified digital broadcasting solutions specializing in high-speed, high-quality media ingestion and delivery across connected devices, announced today that it has been selected for the Streaming Media 100, an annual list compiled by Streaming Media magazine, which honors the most innovative and influential companies in the online video industry. The company has also been nominated for the publication's Reader's Choice Awards.
The Streaming Media 100 highlights the 100 companies that matter most in online video: from content creators and producers to distributors and monetizers. The complete list of companies was announced in Streaming Media's October/November issue - the magazine's biggest regular issue, which reaches 140,000 technical and business decision makers of online video products and services. This distinction sets the bar for the industry and the list will be prominently displayed on Streaming Media's homepage for the entire year.
"As the number of companies in our space has grown, we've narrowed the purview of the Streaming Media 100 to focus exclusively on what we call 'the enablers'," said Streaming Media Editor Eric Schumacher-Rasmussen. "The companies in the Streaming Media 100 are the technology leaders and innovators that make it possible for video publishers in all verticals--entertainment, education, enterprise, and government--to get their content to their viewers efficiently and effectively, and to maximize ROI to boot."
AllDigital is also nominated for Streaming Media's Reader's Choice Awards in the "Media & Entertainment Video Platform" category. The magazine's readers can vote for AllDigital through October 25 by visiting the Streaming Media website. The top three finalists in each category will be announced in mid-October, and winners will be recognized at Streaming Media West in Huntington Beach, Calif. on November 20.
"We are proud to be recognized by such a respected organization for our end-to-end unified digital broadcasting solution," says Paul Summers, chairman and CEO of AllDigital. "Our cloud-based platform, AllDigital Cloud, easily integrates into existing systems, empowering content creators to customize and deliver the ultimate digital broadcasting experience across any device."
Designed for flexibility and performance, AllDigital Cloud is an end-to-end digital broadcasting solution that offers users a scalable and secure platform to ensure delivery of the highest quality video and playback experience across mobile, PC and digital TV. Powered by some of the fastest, most reliable technology on the market, clients can manage and control digital content for live events, video-on-demand, and linear programming--from ingest to delivery--all from one unified platform. The company works closely with each individual client to develop custom solutions that address their unique business needs. For more information, please visit www.alldigital.com.
ABOUT ALLDIGITAL INC.: Based in Irvine, Calif., AllDigital Inc. empowers enterprises to create scalable, flexible and completely customizable digital broadcasting solutions. With some of the fastest and most reliable technology on the market, AllDigital Cloud allows content creators to develop and deliver the ultimate digital experience across mobile, PC and digital TV. Clients can manage and control digital content for live events, video-on-demand, and linear programming all from one unified platform. From ingest to delivery, AllDigital Cloud provides an end-to-end digital broadcasting solution that can be customized to fit any company's unique business needs. For more information, please visit www.alldigital.com.
Copyright (C)2013. AllDigital, Inc. All rights reserved. All marks are the property of their respective holders.
CONTACT: Leslie Licano
Beyond Fifteen Communications, Inc.
949.733.8679
leslie@beyondfifteen.com
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http://www.globenewswire.com/newsroom/ti?nf=MTMjMTAwNTE2MDUjMjI1NDk=
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