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01/10 16:01
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong positive factors such as a turnaround in cash flow, positive cash flow from operations, and a substantial increase in gross margins. The company also announced a potential new seven-figure deal and a $4 million DoD contract, which are significant positive catalysts. Although Q3 revenue decreased, the company expects a 15% to 25% revenue growth for fiscal year 2025. The share buyback plan adds additional positive sentiment. The absence of Q&A questions suggests no immediate concerns from analysts, supporting a positive sentiment.
Q3 Fiscal Year 2025 Revenue Approximately $1.4 million, a 25% decrease compared to Q3 Fiscal Year 2024 revenue of approximately $1.9 million, primarily driven by revenue recognition timing.
Revenue for Nine Months Ended March 31, 2025 Approximately $7 million, essentially flat compared to the same nine months period last year, despite divesting and consolidating multiple subsidiary companies.
Fiscal Year 2025 Revenue Expectation Expected in the $10 million to $11 million range, a 15% to 25% increase for fiscal year 2025, despite divesting and consolidating multiple subsidiary companies.
Q3 Fiscal Year 2025 Gross Margin Approximately 72%, compared to 70% for Q3 Fiscal Year 2024, with an expected future gross margin in the 55% to 75% range due to a larger portion of revenue coming from Spatial Core and software license sales.
Q3 Fiscal Year 2025 Net Operating Cash Positive cash gain of approximately $0.13 million, compared to a net operating cash loss of approximately negative $0.92 million for Q3 Fiscal Year 2024, reflecting significant reorganization efforts and cost reduction.
Net Operating Cash Loss for Nine Months Fiscal Year 2025 Approximately negative $0.13 million, compared to approximately negative $4.3 million for the same nine months period last year, despite having a similar level of revenue.
Q3 Fiscal Year 2025 Adjusted EBITDA Loss Approximately $1 million, compared to an adjusted EBITDA loss of negative $0.9 million for Q3 Fiscal Year 2024, primarily driven by lower recognized revenue this quarter.
Adjusted EBITDA Loss for Nine Months Fiscal Year 2025 Approximately $1.2 million, compared to an adjusted EBITDA loss of approximately $3.5 million for the same period last year, indicating a marked improvement.
Fiscal Year 2024 EBITDA Loss Expected to be slightly negative compared to an EBITDA loss of negative $4.6 million in fiscal year 2024, indicating a marked improvement.
Cash and Equivalent Position as of March 31, 2025 Approximately $7 million with an additional $0.65 million in accounts receivable, maintaining a clean capital structure with no debt.
Spatial Core: Spatial Core is an operating system for spatial computing, integrating data and AI into 3D environments, enabling cloud compute and creation of complex simulations.
AI-driven immersive training product: Fortell Reality entered into several contracts for its AI-driven immersive training product.
Glimpse Learning: Glimpse Learning entered into multiple software license contracts in the healthcare and educational segments.
DoD contracts: Brightline is expected to deliver its $4 plus million DoD contract this month.
New Spatial Core deal: Received official confirmation for a new seven figure Spatial Core deal, expected to be signed soon.
Tier one customer base: Strong traction in Spatial Core's AI and cloud-driven revenues, with a deep pipeline of revenues across businesses.
Positive cash flow: Delivered second consecutive quarter of positive cash flow from operations.
Cost control efforts: Achieved positive cash flow as a direct result of reorganization and cost control efforts.
Gross margin improvement: Gross margin for Q3 fiscal year ‘25 was approximately 72%, expected to be in the 55% to 75% range going forward.
Share buyback plan: May seek to utilize untapped $2 million common share buyback plan to protect stock value.
Reorganization efforts: Significant reorganization efforts led to a turnaround in cash flow and operational efficiency.
Regulatory Issues: The U.S. government's continuing resolution and the lack of a federal budget for 2025 has delayed the potential awarding of multiple government and DoD opportunities.
Competitive Pressures: There continues to be a sharp disconnect between the company's intrinsic value and its current public company valuation, both standalone and versus public and private comps.
Supply Chain Challenges: No specific supply chain challenges were mentioned, but the overall economic environment and government budget delays could imply potential indirect impacts.
Economic Factors: The company is navigating a challenging economic environment, particularly with the uncertainty surrounding federal budget allocations which could affect revenue recognition and contract awards.
Spatial Core Development: Spatial Core is delivering in advanced environments, with transformative applications in robotics, drones, and digital twins. Recent developments include a $4 million DoD contract and a new seven-figure deal expected to be signed soon.
Positive Cash Flow: The company achieved its second consecutive quarter of positive cash flow from operations, attributed to reorganization and cost control efforts.
Share Buyback Plan: The company may utilize its $2 million common share buyback plan to protect its stock value.
Growth in Immersive Companies: Other immersive companies within Glimpse are performing well, with contracts signed across various sectors including healthcare and education.
Q4 Fiscal Year 2025 Revenue: Expected revenue in the range of $3.2 million to $3.8 million, profitable due to the final stage of a large DoD contract.
Fiscal Year 2025 Revenue Guidance: Projected revenues for fiscal year 2025 are expected to be between $10 million to $11 million, reflecting a 15% to 25% increase.
Gross Margin Expectations: Expected gross margin to be in the range of 55% to 75%, an increase due to higher revenue from Spatial Core and software sales.
EBITDA Outlook: Expecting positive EBITDA in Q4 FY 2025 due to higher anticipated revenue, with a slight negative EBITDA expected for the full fiscal year 2025.
Share Buyback Plan: The company may seek to utilize its untapped $2 million common share buyback plan to protect its stock if circumstances warrant its utilization.
The earnings call highlights several negative aspects: a significant revenue decrease, increased EBITDA loss, and lack of revenue guidance. Although the gross margin improved, the absence of revenue guidance, impacted contracts due to government shutdowns, and uncertainties around the Brightline IPO spin-off overshadow positive developments like Foretell AI traction. The lack of Q&A engagement suggests limited analyst enthusiasm or concerns. These factors, combined with uncertainties in strategic initiatives, suggest a negative sentiment, likely leading to a stock price decline in the range of -2% to -8%.
The earnings call presents a positive outlook with significant revenue growth, strong gross margins, and improved cash losses. The strategic spin-off of BLI is expected to unlock shareholder value. The Q&A session revealed opportunities in defense, education, and healthcare, with plans for partnerships and no immediate cash needs. The market is likely to react positively, given the strong financial performance, strategic initiatives, and clear management communication. However, the lack of market cap information limits the strength of the prediction.
The earnings call highlights positive developments, such as new contracts and positive cash flow, but also significant risks including missed EPS expectations and regulatory delays. The absence of analyst questions in the Q&A suggests limited engagement or concerns. While the strategic focus on Spatial Core and upcoming deals is promising, competitive pressures and economic uncertainties temper the outlook. The combination of these factors suggests a neutral market reaction in the short term.
The earnings call highlights strong positive factors such as a turnaround in cash flow, positive cash flow from operations, and a substantial increase in gross margins. The company also announced a potential new seven-figure deal and a $4 million DoD contract, which are significant positive catalysts. Although Q3 revenue decreased, the company expects a 15% to 25% revenue growth for fiscal year 2025. The share buyback plan adds additional positive sentiment. The absence of Q&A questions suggests no immediate concerns from analysts, supporting a positive sentiment.
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