NEW YORK, March 1, 2004 (PRIMEZONE) -- (Investrend Research Syndicate) Semotus Solutions (AMEX:DLK) has been rated "Speculative/3," with a target valuation of $2, by Investrend Research analyst Gary Vassalotti in a comprehensive update.
The complete report is at http://www.investrendresearch.com.
"During the third quarter, Semotus Solutions bolstered its sales force by hiring seasoned sales professionals," noted Vassalotti in his report. "These moves should start being evident on the top line during the next few quarters, as the group gets up to speed."
"Although Semotus did not meet my 3rd quarter sales projections, management's assertion that major customers have decided to delay purchases until the customer's new budget year is plausible. Thus, the next quarter may give a better perspective on the direction of sales and earnings projections."
Also, Vassalotti stated, "Semotus has made positive steps to improve their capital structure with the buyback of 500,000 shares related to the ADA acquisition. In addition, Semotus has retired its preferred stock. This simplification of the capital structure should make Semotus' financial statements more transparent for investors and any creditors or business partners."
Semotus also had an infusion of cash after in January, after the quarter's end, of $1 million, said the analyst. "These funds are to be used to jump start sales and marketing. Operating expenses for the quarter were above sales, coming in at 108.7% of revenues. This compares favorably to last years third quarter where operating expenses were 281% of revenues reflecting Semotus Solution's lower spending level in the latest quarter."
Finally, stated Vassalotti, "The CEO's continued faith in the company as demonstrated by his continued no-sale of shares history is also a positive that should not be ignored."
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