Often times, it is quite a chore to find good information on the micro and small cap companies MicroStockProfit.com and other independent publications cover. Even when you do find a source, they tend to have a tilt toward the buy or an optimistic way of seeing things.

Luckily for followers VOIP or investors interested in ATSI Communications, The San Antonio Business Journal has decided to do a little research and report on the company.

In an article entitled "Local Telecom Firm ATSI Has Found Its Groove CEO Says"

It states that ATSI has risen from the proverbial ashes over the past three years and now looks to gain significant share in the global VoIP marketplace. A testament to ATSI's recent 180 degree turn around is the company's surging revenues, which grew from $1.3M in 2004 on the verge of bankruptcy, to nearly $32M in fiscal 2007 where ATSI expects to turn its first profit since inception. This one sure deserves a read. . .

VoiP is where it's at

Well-respected industry sources such as On World Inc. are estimating that the number of VoIP users will balloon from about 16M in '06 to 207M by 2011. And other research houses such as In- Stat state that the technology's strongest growth will occur in regions outside of the U.S. Obviously, ATSI is playing in some of the world's hottest markets. The company is also turning a profit, quite impressive as the Vonage's of the world continue to take a vicious beating and expend exorbitant amounts of resources on acquiring just one single customer.

ATSX shares are currently trading at a price of $.23 on the OTC bulletin board, nearly 70% of its 52 week high of $.39. ATSX shares were formerly traded on the American Stock Exchange. In the recent San Antonio Biz Journal write-up, management states their dedication to once again obtaining listing on a senior stock exchange.

Excerpt from article:

Smith says that with the company's strong recent growth, the issues with the AMEX are behind it and he says ATSI will be able to meet the exchange's requirements in the future. "Our growth trend will continue," Smith says. "We have had a tremendous year."

The Turn-Around Continues

Posting record revenues each quarter since 2006, experiencing greater than 100% revenue growth in '07 while turning a profit and developing a well- entrenched position within the world's fastest growing communications markets, ATSX is also diversifying its business to facilitate further growth.

From the SA Biz Journal article:

Although Smith declined to provide details, he says the company is looking to launch a new product in the coming fiscal year and is looking at a possible acquisition.

"We are exploring several strategic initiatives that would diversify our product line beyond the international VoIP service," Smith says. "We need to move beyond that VoIP. (The company) may take a different form in the future."

With revenues surging, a bottom line improving like never before and all indicators of industry growth pointing upwards, it looks like all of ATSX's ducks are in a row. With ATSI's 10K due out in October and the stock price trading at a nearly ¾ discount from its 52-Week high, now could prove to be a bargain basement shopping opportunity before the market floods in. It's back to school time folks. Time to do your homework!

Labels: ATSI, ATSX, VoIP