Consensus community valuation
$0.130
Average Intrinsic Value
80.6%
Undervalued by
Active Member Straws
#Q4 Results
Added 4 days ago

Knosys saw a 19% lift in license and support fee revenues for the year, and now has an annual run rate of $3m in recurring revenues.

The buisness was cash flow positive for the 4th quarter, up $0.4m. It now has $3.7m in cash.

The company said it was well placed to capitalise on the increasing trend of working from home, and is on the hunt for potential bolt-on acquisitions (which would almost certainly require a capital raise).

You can read the full quarterly results here

 

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#Contract win
Added 2 months ago

Knosys has signed a deal with ANZ New Zealand to migrate its data to a standalone Knowledge IQ system -- a decision driven by a regulatory requirement not to have technology systems dependant on any foreign parent entity.

The deal is expected to generate $840k in service fees over 9 months. For context, KNO generated $396k in customer cash receipts in the March quarter -- so this is a significant deal.

I quite like the business, but am wary of the customer concentration. I do not hold at present.

ASX announcement is here

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#Financials
Added 3 months ago

From march quarter update

Should i be worried? -

  • Net cash used in operating activities for the March 2020 quarter was an outflow of $817k
  • Estimated cash available for future operating activities: $1.98m
  • Estimated quarters of funding available; 2.4

or not?- 

  • During the latter part of the quarter Knosys commenced managing down certain expenditure, reducing development costs, personnel expenses and marketing and travel activities to levels below recent quarterly run rates.
  • Total receipts are estimated to significantly increase in the June 2020 quarter, with government R&D grant funds of over $550k and potential new contracts adding to the regular monthly customer receipts. In addition to this, contracted large annual licence renewals of over $1.2m are due to be invoiced in May / June 2020, with payment due to be received in June / July 2020

Finally why are staff costs so high:

  • March Quarter Receipts from customers $396K
  • March Qarter staff costs $639K

 

 

 

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