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VOLUME
04: ISSUE 48
Feature:
Superclick - Revenues Up and Verizon on the Horizon.
Lots
of good stuff in this one.
First,
Superclick (OTCBB:
SPCK) announced (release below) its second quarter numbers
for fiscal 2004 on Tuesday. With six-month revenues of $616 thousand, the
company has produced virtually as much (well, 94 percent) in six months
as Superclick Networks produced for fiscal 2003 ($652 thousand) prior to
its restructuring into a public company in October 2003.
Second, Superclick has issued guidance
that states for fiscal 2004 it "expects to achieve revenues in the
range of $1.75 to $2 million versus un-audited revenues of $652.3
thousand for the combined companies (Superclick, Inc. and SNI) in fiscal
2003". That's some serious horsepower.
Finally, the company announced the
first four installations courtesy of its deal with Verizon (NYSE:
VZ). We believe that the number of installations will swell significantly
as the year unfolds.
We
continue to suggest accumulation of SPCK shares at current levels.
Nothing material has changed, technically
speaking, since we took a look in our last SPCK piece on June
1st: "The trend seems to the upside with little weakness
evident. A stop loss at 75 cents would likely be prudent. Even though the
price has doubled from our initial Alert
in February at 46 cents, we believe that there is significant upside potential
for the shares over the next 6-12 months."
The difference now versus a couple
of weeks ago is that the company has reported significantly higher numbers,
has seen the Verizon deal begin to bite, and is optimistic enough with
its prospects to project a significant revenue jump that would soundly
trounce 2003's numbers.
Verizon's
not stupid...
Verizon could have picked any small
company with gee-whiz technology to work with. Way past gee-whiz, Superclick's
technology and management were vetted and accepted as competent and savvy
enough to play with the big boys. And, by the way, Superclick isn't sitting
around waiting for the batphone to ring with orders from Verizon: the company
is grabbing significant new, repeat and upgrade business on its own-- as
well as developing or acquiring new technology products and solutions such
as packet-based audio conferencing detailed in our last SPCK piece.
Let me wax here for a moment. Investors
tend to concentrate on what can go wrong with a SmallCap. As we have seen,
extraneous events, nasty trading and inflated promises get the headline.
We tend to approach cynically a small company that seems to add success
after success in a short period of time. In the case of Superclick, I believe
that type of cynicism would be misplaced.
In a few short months, the company
has grown its influence and revenues from meager to a point at which significant
growth and potential can actually be quantified.
As always, trade strategically...
Are there risks? Sure. Should investors
buy this stock simply based on projected revenues and seemingly large potential
from deals derived within the company and with partners? Well, actually,
yes, although the caveats remain the same. Companies at a formative stage
of development have both the greatest risks and, potentially, the greatest
rewards. That said, while the prospects for Superclick look extremely compelling,
only those investors who can stand the vagaries of the markets--both in
the bigs and the smallcap--should wade in, big-time.
For
the rest of us, a small position now in SPCK in the risk portion of a portfolio
with a view to buying more on dips makes the most sense. That way, we're
there if there aren't any dips and we won't get flayed if there are.
My sense is that there will be significant
upside action in Superclick over the next 6-12 months as it grows rapidly
beyond its formative stage and solidifies and executes its business plan.
Don't bet the farm, but planting
a few acres in the shares now will likely be worth harvesting over that
time frame.
Press Release Source:
Superclick, Inc.
Superclick, Inc. Announces Financial
Results For Second Quarter and Guidance For Fiscal 2004
Tuesday June 15, 6:59
pm ET
LAGUNA HILLS, Calif.,
June 15, 2004 (PRIMEZONE) -- Superclick, Inc. (OTC
BB:SPCK.OB - News) today announced results for the second fiscal quarter
ended April 30, 2004.
Revenues for the second
quarter of fiscal 2004 were $324.7 thousand compared to $291.4 thousand
as reported for the first quarter of 2004, which represents an increase
of 11%. The Company reported no revenue for the same period last year.
Net loss for the second quarter was $430.8 thousand or $0.02 per share,
compared to a net loss of $21 thousand, or $0.01 per share, in the second
quarter last year.
For the six months ended
April 30, 2004, revenues were $616.1 thousand versus no revenue reported
for the same period last year. Net loss for the six months ended April
30, 2004 was $543.4 thousand, or $0.03 per share compared to a net loss
of $35 thousand on no loss per share in the same period a year ago.
Revenue comparisons in
this statement do not include revenue recorded by Superclick Networks,
Inc. (SNI) which was not acquired until October 2003 and whose revenue
is not accounted for in Superclick, Inc.'s reported revenue statements
for the period.
``Taking into account
the non-reported revenues derived from Superclick Networks, Inc., we are
pleased with the Company's performance in the first six months of fiscal
2004, and encouraged by the prospects of demonstrating strong revenue growth
over the remainder of the year,'' commented Chief Executive Officer, John
Glazik. ``In fact, our performance through the first six months of fiscal
2004 is equal to 94% of the revenues achieved over the entire fiscal year
2003,'' he added.
Key highlights for the
quarter were:
-- Installations
of the first four properties under the Verizon
master
reseller agreement
-- Establishment
of packet-based audio conferencing center solution
-- Selection by
Westmont Hospitality Group as its High Speed Internet
solutions
provider
Fiscal 2004 Guidance
For the balance of fiscal
2004, Superclick anticipates substantial progress in achieving its growth
initiatives. The Company expects revenues in the range of $1.75 to $2 million
versus un-audited revenues of $652.3 thousand for the combined companies
(Superclick, Inc. and SNI) in fiscal 2003.
About Superclick, Inc.
Superclick, Inc. (OTC
BB:SPCK.OB - News), through its wholly owned, Montreal-based subsidiary
Superclick Networks, Inc., develops, manufactures, markets and supports
the Superclick Internet Management System (SIMS(tm)) in worldwide hospitality,
multi-tenant unit (MTU) and university markets. Superclick provides hotels,
MTU residences and universities with cost-effective Internet access utilizing
high-speed DSL, CAT5 wiring, wireless and dial-up modem technologies. Superclick's
proprietary technology converts dial-up analog Internet calls to digital
access, improves connection speeds, unclogs local trunks, consolidates
Internet traffic, supports flexible billing and provides targeted advertising
to end-users. Current clients include MTU residences and Crowne Plaza(r),
Four Points by Sheraton(r), InterContinental Hotels Group PLC, Hilton(r),
Holiday Inn(r), Holiday Inn Express(r), Hampton Inn(r), Marriott(r), Novotel(r),
Radisson(r), Sheraton(r), Westin(r) and Wyndham(r) hotels in Canada and
the United States. For more information see: http://superclick.com
.
Contact:
Superclick, Inc.
Investor Relations
John Bevilacqua
(866) 405-3959
Source: Superclick, Inc.
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