Nighthawk Swoops Up Another Major Order
With oil flirting with all-time highs and inflation fears dragging the US Dollar to unprecedented lows while cost of living surges, technological solutions that help conserve both energy and money have never been more so timely.
The EIA projects that world energy consumption will rise nearly 60% from 2004 to 2030. During this time, the organization expects global use of petroleum and other liquid to grow from 83 million barrels oil equivalent per day to 118 million.
Demand Grows As Energy Prices Soar
 So, clearly the need for solutions such as those offered by company's like Nighthawk Systems (OTCBB: NIHK), that are capable of turning virtually any electronic device off and on, is growing, seemingly by the day.
If the broader trends are not enough to convince you, the company's recent string of contracts should.
Another Record Order
NIHK announced a 485 unit CEO700 order today from the Public Works Commission ("PWC") of Fayetteville, NC. According the release, the order - which is expected to ship in 30 days - represents the largest initial order of CEO700's to date from a new customer
NIHK's 'bread and butter' remote control control business boasts a growing list of 50+ utility customers. After announcing the largest ever CEO700 order just a few months ago, it is very promising to see a record new customer order following along so quickly.
If you already know, the CEO700 gives electric utilities the ability to wirelessly disconnect and reconnect power to residential electric meters from a centralized location, improving customer service response times and saving the utility significant time and money over the traditional manual disconnect method that requires multiple truck rolls and field personnel (run-down courtesy of NIHK). Not a bad value-proposition in today's world. Eh?
2 Thriving Business Segments In 2 Thriving Markets
As I've mentioned in previous editions, NIHK's recently acquired set-top box business is expected to register $8M in 2008 revenues. It appears that NIHK more or less inherited a very positive relationship with a leading hospitality technology solutions provider with its purchase of the business.
Within the next few months, NIHK plans to have shipped about 4,700 set-top box units for the customer and seems optimistic that the orders will keep flowing for the foreseeable future.
All very promising given the fact that the aforementioned contracts alone hitting the books would equate to massive incremental revenue growth for the company. On an annualized basis nonetheless. Moreover, these are revenues from one single customer. The implications here are quite interesting if/when potential set-top box customer #1, #2, etc. emerge.
NIHK is showing more promise today than ever before in the more than two years that MSP has been covering the company. With two thriving business segments making documented success in two thriving markets (IPTV & M2M), we think that Nighthawk Systems Inc. is extremely well- positioned for growth in 2008 and beyond. Labels: AMR, IPTV, Nighthawk Systems, Nighthawk Systems Inc., NIHK, OTCBB: NIHK
NIHK Out With Major News Today!
Nighthawk Systems Inc. (OTCBB: NIHK) is out with major news today.
The company recently received a 1,500 set-top box order and expects 2008 set-top box sales to surpass $8,000,000. For a company that logged less that $1M in revenues during the first three quarters of 2007, that figure is nothing to scoff at. The order is from one of the world's largest hospitality broadband service providers and is a follow-up to a previously announced order for 4,200 units that NIHK has been shipping on for the past few months.
With the company's traditional remote disconnect business growing like never before and set-top box revenues expected in the $8M range for 2008, we could be looking at a seriously undervalued company here in the near future if everything goes as planned for managementLabels: IPTV, Nighthawk Systems Inc., NIHK
NIHK Should Be Resilient In a Trying 2008
Given today's extremely uncertain economic climate, investors are paying closer attention to where they put their money than ever before. As inflation hits a 17- year high and everyday items such as gasoline, milk, and even beer chip away at a growing percentage of our paychecks, the search is on for stocks that will pull their weight in the New Year.
This year will have many opportunities fighting for their chance to decorate your stock ticker, but with the outlook for 2008 far more uncertain than that of 1998, it is important to do your research. This time of year, the consumer shifts focus financially and we should see some changes in the market.
Where, Oh Where, Do Your Dollars Go?
Already looking to be well-poised to perform in 2008 is Nighthawk Systems Inc. (OTCBB: NIHK) which we have been tracking for the better part of two years. Subscribers likely know more about NIHK than they want or need to but knowing your animal is vital when every investing dollar affects the bottom line more than ever.
Now boasting a pair of high-potential business segments rooted in two burgeoning markets M2M (machine-to-machine) and IPTV (Internet Protocol Television) - NIHK has positioned itself to cash in on a pair of major trends that should hold steady despite the ongoing economic slowdown. Haven't you heard? IPTV is the new satellite.
Nighthawk is Moving with the Market
With products and services that capitalize on both the world's need to conserve energy and the next step in the video signal revolution, Nighthawk has built a very solid business over the past few years. Among recent successes, NIHK has recently announced its best quarter in 4 years, the largest remote disconnect order in corporate history, and initial shipments from the newly-acquired IPTV set-top box business. So, clearly measurable progress is being made from an operational standpoint.
Today's news is excellent because it quite accurately exhibits Nighthawk's ability to turn first-time customers into long-term business partners. Nebraska Public Power District ("NPPD") has been working with NIHK for more than three years in effort to expand their remote disconnect initiative, just like many other energy-related utilities. With the technology age churning out revolutionary products seemingly daily, long standing customers in an industry like NIHK's is a testament, not only to their caliber of product, but to their staying power in the marketplace.
Make a Client vs. Keep a Client
If you're not seeing the trend here, check back through NIHK's string of press throughout '07. It's chock full of news regarding orders and more importantly re-orders from the likes of Verizon Wireless as well as numerous utilities throughout the country including El Paso Electric, Southwest Arkansas Electric Cooperative, and Cheyenne Light, Fuel & Power Company.
Nighthawk's ability to generate first-time and repeat business in such a rapid fashion has greatly accelerated its growth rate to date. This is evidenced by management stating that in Q3 was their best in 4 years and also that during the quarter they sold and produced more CEO700 whole house disconnect devices than in any quarter in its history. Please remember that this best quarter was without any IPTV sales (no shipments until Q4), which are now starting to provide a very nice boost to the already surging growth rate.
IPTV - The Video Revolution
In terms of consumer adoption, Internet Protocol Television (IPTV), viewed by many as the next step in the video revolution, is an industry set to explode. More specifically, analysts envision the market to house 50 million subscribers by '09 and be worth nearly $40 billion by '10. Although these may be optimistic industry outlooks, NIHK is already shipping set-top boxes to customers in effort to fulfill orders valued at just under $900,000. For a company that logged about that during '06, I like what I'm seeing from this newly acquired venture.
In regards to the M2M space, research firm IDATE forecasts the market to potentially reach $270 billion by 2010. While largely focused in the wonderful world of energy-related utilities, NIHK has sold horizontally through various alliances into applications such as traffic control, exhaust fan control, and many others. Since their products can essentially turn any electrical device on or off remotely, growth in the M2M space should translate into growth for NIHK, particularly as they strive to explore new applications for their products as well as alliances that help increase their brand recognition.
2008 is shaping up to be a year in which emerging small-cap ventures thrive due to their niche positions in resilient markets, while other not-so-lucky ventures fall by the wayside. Luckily, NIHK is strongly positioned in 2 resilient markets. With the stock now teetering on a bottom while showing some strong upwards momentum in recent days as the broader market gets crunched, Nighthawk Systems Inc. should be on your radar screen going forward if it isn't already.
Don't forget, the stock ran up to its 52-week high of $.24 last April on much weaker fundamentals and with nowhere near the growth potential currently being exhibited. So, we could be in for another bull run if growth continues at such a rapid pace.Labels: Automated Meter Reading, IPTV, M2M, Nighthawk, Nighthawk Systems, Nighthawk Systems Inc., NIHK, Remote Disconnect, Smart Metering
Solid News Out of NIHK
Nighthawk Systems Inc. (OTCBB: NIHK) shares appear to be reaching a bottom after being beat down considerably over the past three months and today’s news could be just what it takes to incite a move upwards.
Now competing in two burgeoning markets - M2M (machine-to-machine) and IPTV (Internet Protocol Television) – NIHK announced an initial order for their landmark CEO700 wireless disconnect units today from Central Hudson Gas & Electric. The new customer is a wholly-owned subsidiary of CH ENERGY GRP HLDG (NYSE:CHG), which logged just under $1 billion in 2006 revenues, serves more than 371,000 clients across the state of New York, and trades in the $40.00 range.
One thing that I like very much about today’s release is that NIHK was able to successfully customize their remote disconnect solution to meet the needs of a major utility. Over roughly the past year, Nighthawk has exhibited their dedication to becoming more of a flexible solutions provider as opposed to a box slinger, as I have mentioned previously.
This is great for the company because it helps build their reputation as a value-added partner. In my opinion a key attribute that potential customers, particularly energy-related utilities, are looking for in vendors these days as they delve deeper into the new world of smart metering and remote disconnect technologies.
What would you rather, somebody who hands you a box and tells you “here, use it” or a value added partner that evaluates your specific situation and molds a solution to your problem? It seems like a very simple choice and that electric utilities are increasingly making it in favor of NIHK.
Another thing that I find interesting about today’s release is that the company is gaining a major foothold in New York, a region striving to reduce energy consumption with major support from its government. With Governor Eliot Spitzer calling to reduce state resident’s energy bills through the implementation of smart metering technology, NIHK is positioning itself in a market with very high growth potential for its remote disconnect products. http://readme.readmedia.com/news/show/Green-Response-to-Govs-2008-State-of-the-State-Address/34415
With NIHK recently announcing its best quarter in 4 years, the largest remote disconnect order in corporate history, and initial shipments from the newly-acquired IPTV set-top box business, we are very optimistic in regards to what the next few months hold for the companyLabels: CHG, IPTV, M2M, Nighthawk, Nighthawk Systems Inc., NIHK
Blue Skies Ahead For IPTV
 I came across an article from DailyIPTV.com today that I felt was worthwhile of sharing with everyone. The premise here, is that although it has taken a bit longer than many expected, IPTV is finally coming into its own. Have a look, after reading a boatload of potentially overly-aggressive IPTV market estimates, this article gives a very leveled description of where the market has been as well as an optimistic, yet not quite cheerleader-esque viewpoint of where it is going. Labels: IPTV
Motorola Expects Big Things From IPTV Market
Motorola Expects Big Things from IPTV Market
It appears that Nighthawk Systems Inc. (OTCBB: NIHK) picked the right market, particularly if IPTV expert Motorola is on point with recent estimates on industry growth. Motorola expects that:
The residential IPTV subscriber base to balloon from nearly 4.6 at the end of ’06 to nearly 60 million by the end of 2011; and Shipments of IPTV set-top boxes to reach 7 million in 2007 and grow to more than 20 million by the end of 2011.
Now coming to market with an industry leading M2M and IPTV products, NIHK is beginning to gain some serious traction in two of the world’s hottest markets. Labels: IPTV, M2M, Motorola, Nighthawk, Nighthawk Systems Inc., NIHK
Nighthawk Expands Revenues - Focus
Nighthawk Systems Inc. (OTCBB: NIHK) filed an 8K after market on Friday and a press release this morning that holds the potential to increase revenues by $6,000,000 over the next twelve months and transform the company into a much larger M2M industry player, as well as open many cross-marketing doors. In a move that helps NIHK build the critical mass necessary to successfully target larger deals and also reach profitability, the company has agreed to acquire the IPTV Set-Top box business from Eagle Broadband. For those of you unfamiliar with the IPTV acronym, our friends from Wikipedia will clear things up for you: http://en.wikipedi a.org/wiki/Iptv "IPTV (Internet Protocol Television) is a system where a digital television service is delivered by using Internet Protocol over a network infrastructure, which may include delivery by a broadband connection. A general definition of IPTV is television content that, instead of being delivered through traditional broadcast and cable formats, is received by the viewer through the technologies used for computer networks.
For residential users, IPTV is often provided in conjunction with Video on Demand and may be bundled with Internet services such as Web access and VoIP. The commercial bundling of IPTV, VoIP and Internet access is referred to as "Triple Play" service (adding mobility is called "Quadruple Play"). IPTV is typically supplied by a service provider using a closed network infrastructure. This closed network approach is in competition with the delivery of TV content over the public Internet, called Internet Television. In businesses, IPTV may be used to deliver television content over corporate LANs."$6,000,000 Cash Influx With Much Greater PotentialSince I have a pretty deep understanding of what transpired with Eagle's IPTV business over the past 6 months, I have a pretty good idea of the potential that this deal holds for NIHK's future. In terms of overall opportunity added on with the acquisition, Internet Protocol Television ( IPTV) is an industry that is about to explode. More specifically, analysts envision the market to be worth nearly $40 billion by '10 with more than 50 million subscribers. That's all well and good you might say, but what does that mean if the company's products have no traction in key consumer markets. Well have no fear - NIHK already has an ace up their sleeve. Ace in the Hole with New Set-Top Box BusinessPrior to its sale, the boys at Eagle Broadband made some valuable inroads with one of the world's leading hospitality IP solution vendors before the big telecoms could make it to market with a viable offering. Under the terms of the agreement, the company would follow up an initial shipment of 500 units with a $6M contract that was staggered out over 13 months if all went well. If NIHK is able to deliver on this new contract and pave the way for a bigger relationship down the road, the possibilities are very interesting. Based strictly on our estimate of, say, 505,000 hotel rooms under their hospitality customer's umbrella, and at an average selling price of $500 for EAG's set- top boxes (likely a sickeningly discounted); it is safe to assume NIHK experiencing the following revenues at specific penetration rates: 5% penetration = $12,600,000 10% penetration = $25,300,000 15% penetration = $37,900,000 * Please remember that these figures are only estimates and represent only potential revenues derived as a result of a strengthened relationship with its unnamed customer in today's news and do not take into consideration the growth of NIHK's historical business.
This deal is a home run for a number of reasons. Hey, I'd say any acquisition that boosts revenues by more than 600% near-term and holds the potential for 4000% gains down the road is a winner. I'm guessing the market will react favorably off the bat, so dig your heels in and conduct a little due diligence on your own behalf on the IPTV industry, the potential set-top box deal on hand, and the prospects of NIHK's historical business
Labels: IPTV, Nighthawk, Nighthawk Systems, Nighthawk Systems Inc., NIHK, OTCBB: NIHK
Eagle Broadband: In the Drivers Seat
After taking a long, hard look at Eagle Broadband's (OTCPK: EAGB) much anticipated 10Q filing and speaking with CEO Dave Micek, we are pretty darn excited about what the future holds for the company. As analysts predict an upcoming surge in Internet Protocol Television (IPTV), EAGB is attracting some of the industry's biggest deals, shaving off costs at a record clip (1st half fiscal '07 operating expenses down more than $1.75 mil vs. 1st half of '06), and from an operational standpoint, simply becoming far more efficient than ever before. Just in time for the inception of a video revolution! Don't get us wrong, IPTV growth alone could easily propel EAGB to unprecedented levels in regards to both corporate growth and value in the equity markets. The IPTV market IS expected to reach $40 billion by 2010, with 50 million subscribers by 2009. However, the company continues to generate a significant source of income through synergistic, yet separate, business segments (IT services and satellite communications). When attempting to gauge EAGB's near term market opportunity in the IPTV space, its helps to envision Internet Protocol Television as a racecar. Having a competitive, not to mention champion, car requires a ton of work in many respects (parts, expert engineering, maintenance, etc.). Oddly enough, many U.S. Triple Play (cable, internet, television) providers or prospective triple play providers are finding themselves in the same boat as prospective race car owners. Sure, you can hit AutoZone® and buy most of the pieces required to put the car together, but do you posses the knowledge, experience, patience, and time required to perfectly engineer the automobile and ensure that it can hold its own on the Formula One circuit? Well, if you're a company historically entrenched in the cable industry, this could be like Boeing attempting to snag market share away from Ferrari.This is where EAGB is poised to make a killing. By offering the "whole schebang", or more properly put, a complete IPTV solution including: hardware, software, signal encryption, system architecture/installation, and 24/7 monitoring, EAGB has attracted some huge contracts and has established itself as a very attractive choice for media providers of every tier. While IPTV remains a concept in the heads of many, EAGB should be in no way associated with a "concept" company. EAGB logs real revenues (Q2 fiscal '07 revs are up 13% over the same period of fiscal '06) and maintains real customers. Check this out! . . . Eagle Broadband Livehttp://nocipcamera1.eaglebroadband.com/view/view.shtml?imagePath=/mjpg/video.mjpg&size=1This is a live link to one of the company's head-ends in Texas. Although this particular command center is not currently serving IPTV customers (that head-end is in Miami), the link above exhibits the company's 24/7 monitoring capabilities, already solid infrastructure, and established customer base (green boxes on the hard to read screens represent customers in a certain area). Although small in stature, Eagle Broadband sure packs a punch. With the company's 10K filed, it should only be a matter of days before EAGB soars again, this time on the OTC Bulletin Board. As far as other progress is concerned, a quick peek at corporate news dated 4/23/07 provides an excellent snapshot of the what company has been up to over the past six months. Here are a few highlights: Signed a contract with FrontGate Broadband to deliver IPTVComplete(TM) in Florida
Shipped 500 units of Eagle's newest set- top box, the MediaPro IP3000HD, to a leading hospitality solutions provider
Signed a contract with the same hospitality solutions provider under which Eagle could ship more than $6 million in set-top boxes over a 13- month period if delivered according to the customer's service schedule
Acquired the customer base of Connex Services, Inc., a Houston-based IT services company
Appointed Tony Cordaro, the former president and CEO of Connex, as vice president of IT Services, and Kane Brushwood, a former Connex executive, as a director of IT Services
Secured a satellite communications system contract with Fort Bend County, Texas, to provide a portable SatMAX® Emergency Communications System and pre-wire the County's emergency operations center
Received a patent on our advanced set- top box technology that ensures secure delivery of digital television content
Received a series of contracts and completed installations of VoIP office support systems at five regional hurricane-recovery program offices for a world-renowned international disaster-relief organization
With ANEW Broadband, launched a joint collaboration of ANEW Vision; a triple-play service offering, specifically designed for multi-dwelling buildings.
As many of the telecom "big dogs" scurry to perfect their respective pieces of the IPTV puzzle, Eagle Broadband is already there with a complete solution as demand ramps up. The company's margins are improving and it is attracting increasingly larger contracts while maintaining leadership position in the IPTV space which is poised for monumental growth in the near- term. EAGB is a front runner in an exciting new industry space with a very bright future. Get off the sidelines and get in while the opportunity is undervalued. EAGB has big things ahead of it. This will be a good one for the long term portfolio. As always, do your due diligence and happy trading!Labels: EAG, EAGB, Eagle Broadband, IPTV
Don't Miss Eagle Broadband's Q2 Con Call
WHAT? Eagle Broadband Inc. (OTCPK: EAGB) Second Quarter Fiscal 2007 Result Conference Call.
WHEN? Monday, April 23 at 5:30 p.m. EST (Call will also be recorded and achieved for future listening) WHY? EAG will discus results of Q2 '07 and update listeners on recent corporate developments and progress with customers. Some of what transpires at this colloquium could play an enormous role in the company's market performance going forward.
HOW? Log into www.eaglebroadband.com using Microsoft Windows Media Player or Real Networks RealPlayer. WHAT ELSE? GET INVOLVED!Questions may be submitted prior to the call via e-mail at questions@eaglebroadband.com or via fax to (281) 538-4730, attention: Pat Kennedy. Both faxes and e-mails should be marked with the following subject header: Eagle Broadband conference call. Participants will also be able to submit questions online during the call via the Web cast interface.Labels: EAG, Eagle Broadband, Eagle Broadband Inc., IPTV
Stocks To Watch (pt. 1)
 Referred to by many as the future of television, Internet Protocol Television (IPTV) is expected to explode over the next few years, both in terms of adoption rates and revenues. Analysts are envisioning a market that will house 50 million subscribers by ’09 and be worth nearly $40 billion by ’10. While many tier-one industry players employ a wait-and-see approach, Eagle Broadband Inc. (AMEX: EAG) is making moves today. One of the few companies with Hollywood studio and major entertainment channel content distribution rights, and to our knowledge, the only widely deployed IP high definition set-top box in the hospitality industry, EAG is poised to become a market leader. While many in the IPTV space have grand visions for the future, Eagle Broadband, Inc. is pursuing customers today and is one of very few that have brought an effective solution to market at this point in time. Exemplifying this fact and proving to investors that management is dead serious about building an IPTV giant, EAG announced today that it has entered into a multi-year agreement with FrontGate Broadband, a multi-service broadband provider, to deliver IPTV services to condominium and master planned properties in Florida. Although Eagle management has not yet and likely will not provide guidance on the financial implications of this deal, we do know that, according to the company, FrontGate has a dedicated customer base of what it claims to be thousands of customers. In our opinion, a deal with a fast-growing (main focus is on fastest growing, multi-unit populations of FL.) and well established communications solution provider such as the one announced today will do nothing but positively impact EAG’s growth going forward. In a testament to the capabilities of EAG’s IPTV business, David Suarez, president of FrontGate MediaCom (and former CEO of All Access Technologies) stated, “Eagle’s IPTV content-delivery capabilities are unmatched in the industry,” “With the ability to deliver over 250 channels of in-demand, high-definition programming, we can truly provide complete luxury service bundles to our high-end clients. Furthermore, since FrontGate Broadband already has numerous properties that are expected to be under contract in the near future, we expect to have active subscribers shortly.” For those of you not up to speed on the basis of EAG’s IPTV business, here’s a quick rundown: The company’s solutions enable broadband cable providers, hospitality organizations, and builders within the fast growing MDU (Multiple Dwelling Unit) marketplace to provide more than 200 channels of premium viewing and also reap the benefits of sales associated with Pay-TV, high-definition (HD), personal-video- recording (PVR), video-on-demand (VOD) and subscription video-on-demand (SVOD) related purchases. In a nutshell, EAG equips client companies like FrontGate Broadband with the content that they need to maximize revenues. Still not convinced that the IPTV revolution is upon us, well it appears that Ericsson is. The company has offered up $1.4 billion in a bid to amplify its IPTV offering by acquiring Tandberg Television. Furthermore, a simple search on Google news will yield more coverage of the IPTV market than you will likely be able to stomach. The market surely has not come anywhere close to hitting its $40 billion target, but interest is indeed at an all time high and IPTV-related business deals are being closed at seemingly light speed. Recent discussions with Eagle Broadband executives have us extremely optimistic of what the next 6-12 months has to hold for the company’s IPTV business. This may be one of EAG’s first big IPTV-related contracts, but we have a feeling it won’t be the last. Need a little refresher on Eagle Broadband Inc. (AMEX: EAG)? Check out our corporate information center @ http://www.microstockprofit.com/Companies/Company7.stgx Labels: EAG, Eagle Broadband, IPTV, SatMax
EAG Set To Fight De-Listing
After receiving the bad news recently that the AMEX had rejected its plan to regain compliance and remain on the exchange, Eagle Broadband (AMEX: EAG)feels that the battle has just begun. One stipulation of the AMEX rejection was that EAG would become de-listed if it did not request a hearing in front of the AMEX panel. Eagle is indeed requesting a hearing and seems optimistic of its future results. Commenting on the situation CEO Dave Micek Stated "We look forward to meeting with the panel and presenting our updated plan". Labels: EAG, Eagle Broadband, IPTV
Repeat Sale For Eagle's SatMAX (r) units
Annoucing on Tuedsay an additional order for its SatMAX(r) units from a nationally known communications technology corporation, Eagle Broadbad Inc. (AMXEX: EAG)is exhibiting that its products hold the potential to generate revenues outside of their traditional application markets. According to the EAG, the repeat customer will use the SatMax system test its own NAL Research Iridium-modem-based products. This has been identified by managment as a rather large potential market. Commenting on the recent news, CEO Dave Micek stated, "This repeat order validates that this unconventional use of our SatMAX product is indeed a viable business opportunity for Eagle". Labels: EAG, Eagle Broadband, IPTV
Eagle Broadband Kicks Off '07 with IPTV Sales
Showing promise that cashing in on the oncoming IPTV explosion is still a strong possibility, Eagle Broadband (AMEX:EAG) announced a contract today for 500 units with a leading hospitality solutions provider ( http://biz.yahoo.com/iw/070111/0202165.html). This most recent deal is with a new customer and could hold the potential for follow-up orders if initial roll-outs are successful. With the IPTV market expected to bloom over the next 3-5 years ( http://www.iptvmagazine.com/stats.html), EAG hopes to capitalize on its position as one of the only suppliers possessing Hollywood content distribution rights. Content rights coupled with Eagle’s position as one of the first companies actually implementing complete IPTV solutions should give it a chance to gain a foothold in a market that could become enormous. As the concept of the “Digital Living Room” comes to fruition ( http://www.allheadlinenews.com/articles/7006047656), it seems fairly evident that IPTV will have a spot in the future of television, at least for a period of time. If EAG continues to enhance its position in the market it could be prime for acquisition or partnership with some Internet and entertainment industry big wigs looking for a quick competitive boost. This development is of interest to many watching EAG and wondering when IPTV, its new strategic focus, would begin to yield some gains. If today’s market activity is any indicator, it seems that confidence is rising a bit in EAG’s ability to sign more IPTV related deals. Labels: EAG, Eagle Broadband, IPTV
Sewing the Seeds for a Fruitful Future….
With shareholders and investors a bit up in arms lately regarding the recent market activity of Eagle Broadband (AMEX: EAG), corporate management is on a mission to both improve operational efficiencies and keep EAG listed on the AMEX. News this week only exemplifies that fact that Eagle’s corporate team means business. Recently we have learned that EAG has agreed to purchase Connex Services, Inc., a Houston-based provider of IT-based services. Connex does an estimated $600k in annual revenues, not too shabby! In addition to bringing in a significant amount of cash, the artful acquisition is expected to facilitate growth of EAG’s IT services division by more than 35% (in terms of both accounts and incoming revenues).  At a cost of 1,203,774 shares of unregistered Eagle Broadband common stock, EAG believes that this is one of many moves that the company needs to make to both diversify its business and fuel future growth. Furthermore, the agreement stipulates EAG will not assume any of Connex’s debts or liabilities, a huge bonus as Eagle lays the foundation for a lucrative future. So at this point, like I was, I am sure many subscribers are wondering what this recent announcement has to do with big picture for Eagle. The majority of EAG’s news releases have been strongly focused on IPTV and SatMax in recent months. Any investor following Eagle would wonder, “What calls for the acquisition of an IT services provider??” After a little research, I can answer that question. There is more here than meets the eye. According to Tuesday’s announcement by EAG, Connex provides “national and international project management services for data, voice, fiber-optic, wireless, hospitality systems, access control, audio and satellite installations”. This acquisition, in addition to aiding a struggling bottom line and strongly complementing EAG’s existing IT services business, will provide greater visibility for EAG in its key markets. Exposure in this arena can mean the difference between a 5 cents stock and a 5 dollar stock. Many of EAG’s newly-acquired clients will also be targets for its ready-to-rock IPTV product/service offering.  Through strategic moves like this one, EAG is exposing their product to a larger captivated market and broadening thief offering. With more eyes on the company, potential business opportunities will present themselves. We, at MSP, never claims to be psychics. We have no crystal ball, but as the IPTV market begins to pick up steam (expected to become a $40 billion market by 2010), a prediction like EAG’s success is just common sense. For a little refresher course on EAG’s positioning in the marketplace and why we think this one is going to be an industry frontrunner, check out the most recent coverage of the company by Amalfi Research Group, Ltd. - EAG Research Report. Labels: AMEX, EAG, Eagle Broadband, IPTV, SatMax
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