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Datalex

  • 20-11-2009 7:09am
    #1
    [Deleted User]
    Posts: 0 ✭


    released statement saying revenues was down 19%

    share price closed at 17 cent. was watching this sp fluctuating a lot the last week. where do people see this stock going. even if it goes back above 20 cent in the next few days its still a significant percentage profit.

    just looking for some opinions on this stock


Comments

  • #2
    Lexus1976
    Closed Accounts Posts: 702 ✭✭✭Lexus1976


    This stock will not be going anywhere for a while. Unfortunately its connected to tourism, this industry was most affected by the recession. It may pick up late 2010 or early 2011.


  • #3
    Dr.Glockenspiel
    Registered Users, Registered Users 2 Posts: 9 ✭Dr.Glockenspiel


    Datalex shares closed at 14.5c today. The chart shows some decent support at this level. Re the recent trading statement and the potential for these shares going forward:

    - Over the past two years or so, Datalex has been transitioning their customers from a 'license based' to a 'transaction based' charging system.

    - The 3Q IMS statement reports: The IMS reports: "Total revenue in Q3 2009 was $5.4m, down 19% on the same period in 2008, and down 14% 2009 year to date compared to the previous year. This decline was driven by the reductions in customer spending on professional services, which impacted on both our e-business professional services and TPF consulting activities. These operational spending constraints, and the lengthening of the new business cycle, are both direct consequences of the current travel industry dynamics and the broader economic environment. It is likely that these customer budget constraints will persist well into 2010." In short, consultancy fees were hit by cut backs at airline companies. However, note that this revenue steam is minor, and ancillary to the main area of the company's focus (airline flight booking software-charged on a per transaction basis). The IMS states: "On the positive side, transaction revenue continues to grow, with Q3 2009 showing a 22% increase on Q3 2008, and a 33% increase year to date to $10.4m, against the same period in 2008. Q3 also saw our latest customer begin using the TDP platform, when Copa Airlines of Panama went live on 17 August last. Despite the continuing market and economic challenges, and the increasing length of the new business cycle, we are currently pursuing a number of significant opportunities, and expect to conclude two new contracts before the
    end of 2009, for delivery in 2010."

    - Cost cutting continues apace and R&D Expenditure has fallen off since the latest main product upgrade (TDP ancillary) was completed. I think that one of the 'significant opportunities' mentioned above was a possibility that Southwest Airlines might commit to using this add on.

    In sum, my reading is that since most revenue is now derived from the fast growing, transaction-based area and since costs/R&D spending are falling - the bottom line for this PLC could turn positive sooner then is suggested above. At 14c, they're a good buy. IMO

    I'd like to know what their potential exposure here is: http://www.rte.ie/business/2009/1106/datalex.html


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