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Expecting 65% revenue growth in fiscal 2012; 20% to 25% gross margins
Blue-chip clients, including GE, Microsoft, Dell, McDonald's, etc.
Products addressing multibillion-dollar market opportunity
Over 80% of revenues recurring; set to reach
Historical net operating loss estimated to reduce tax burden through 2027
Asure Software (ASUR) is on a rapid-growth trajectory in a multibillion-dollar market.
The Austin, Texas based provider of workplace optimization software serves a large roster of clients, including many major multinationals such as GE, Microsoft, McDonald’s, Salesforce.com, Lockheed Martin, and Dell. Even more impressive, over 80% of NasdaqCM: ASUR's current revenue base is in the form of recurring payments from its clients.
Operating in a high fixed-cost business, ASUR maintains a barrier of entry over its competition and will see substantial margin improvement once this level is overcome.
ASUR has issued guidance of 65% revenue growth for fiscal 2012 and gross margins are expected to be 20% to 25%!
This impressive financial performance is the result of new management that took over the Company in late 2009. Through the divestiture of non-performing business lines and other cost control measures, this team has moved
ASUR from a substantial operating loss to profitability. Based on free cash flow per share,
ASUR currently trades at a substantial discount to its peers, providing fast-acting investors a very compelling opportunity to profit!
This growing market includes a broad array of software applications designed to help companies manage and automate various human resource and corporate resource functions.ASUR currently provides solutions within two key market segments: time and attendance and meeting room scheduling.
While industry leader Kronos controls approximately 50% of the time and attendance market, the remainder of the market is very regionalized, composed of small and mid-sized businesses using outdated technology. This sweet spot is ripe for cloud-based solutions such as that offered by
ASUR's novel cloud-based meeting room scheduling product is the most feature-rich solution currently available. With the industry lacking a dominant player, ASUR has been quick to accumulate a growing roster of major clients for this valuable corporate resource management application.
According to IDC, the premier global market intelligence firm, the time and attendance and meeting room scheduling system segments of the broader human capital management applications market currently represent a nearly $2 billion market. NasdaqCM: ASUR is rapidly gaining market share in each of these lucrative segments.
By buying early, you could enjoy the biggest gains!
Invest in ASUR today!
With a growing base of recurring revenues, today accounting for 80% of the Company’s sales and expected to reach 90% in the coming quarters, ASUR is able to achieve rapid top-line revenue growth. In fact the NASDAQ-listed company recently upped its guidance for fiscal 2012 – it now expects 65% revenue growth for the year!
This expected growth is reason enough to own ASUR shares now. But there is so much more to this story.
The Company’s EBITDA, which came in at $1.8 million in 2011 is expected to explode more than 120% to $4.0 million in fiscal 2012.
Additionally, when comparing ASUR to its profitable peers, and using the standard valuation metric of price to free cash flow per share (“P/FCF”), it becomes extremely evident that ASUR represents a tremendous opportunity for fast-acting investors.
While companies such as ClickSoftware (NASDAQ: CKSW) and The Ultimate Software Group (NASDAQ: ULTI) trade at substantial double-digit P/FCF ratios, ASUR trades for an extremely undervalued single-digit ratio.
Another value driver for ASUR moving forward is its ability to minimize its tax burden as it accumulates large profits. Due to the Company’s poor performance prior to the new management takeover in 2009, ASUR had accumulated a substantial historical net operating loss. It is estimated the Company will receive benefits well into the next decade – providing a large boost to shareholder value creation.
None of the profiles issued by RedChip Companies, Inc., constitutes a recommendation for any investor to purchase or sell any particular security or that any security is suitable for any investor. Any investor should determine whether a particular security is suitable based on the investor’s objectives, other securities holdings, financial situation needs, and tax status. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. Asure Software, Inc. (“ASUR”) is a client of RedChip Companies, Inc. and of RedChip Visibility, a division of RedChip Companies. ASUR paid RedChip Visibility, a division of RedChip Companies, Inc., $18,000 for twenty-four (24) months of RedChip Visibility Program services, which included the preparation of the equity research report(s). The equity research report(s) were prepared for informational purposes only and were paid for by the company portrayed in the report. Information contained in the equity research report(s) is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. The equity research report(s) are not a recommendation or a solicitation to purchase or sell any security, nor do they constitute investment advice. RedChip Companies, Inc., is currently engaged by this company to provide investor awareness services. Investor awareness services and programs are designed to help small-cap companies communicate their investment characteristics. ASUR agreed to pay RedChip Companies, Inc., a fee of $10,000 in cash per month for twenty-four (24) months of these investor relations services. RedChip Companies, Inc., employees and affiliates may maintain positions and buy and sell the securities or options of the issuers mentioned herein.