BOSTON, February 2, 2017 /PRNewswire/ --
SoundView Technology Group (http://soundview.co) releases the
following company update for NXT-ID, Inc. (NASDAQ: NXTD).
NXT-ID (NXTD $2.62)
Business Update
Kris Tuttle, February 1, 2017
Summary
Nxt-ID reported preliminary Q4 results that were up strongly (as
expected) both sequentially and YoY. The headline number of
$4.5M in revenue compares with
$3.2M in Q3 and nominal revenues a
year ago. Revenues for the full year 2016 were $7.7M compared with less than $1M in 2015. Our estimate for 2017 revenues
remains $37.5M.
Here is an update on the two major business segments:
- LogicMark - Most of the growth in Q4 was driven by
LogicMark which continues to be a consistent and strong performer.
We are expecting (and modeling) continued linear growth for
LogicMark in Q1 and Q2. We could see a step up in LogicMark
revenues beginning in Q3 with expanded distribution and strong
one-time purchase products for PERS.
- WorldVentures - An initial shipment of cards was
delivered in Q4 for WorldVentures to complete their testing. The
exact timing of the major release of the WV flye card will
depend on the completion of tests. Nxt-ID plans to ship a larger
number of cards during Q1 so that WorldVentures can build inventory
and prepare for their launch.
In short, LogicMark is steady and growing with WorldVentures
beginning to kick in with some volume shipments.
Beyond the current business there are some meaningful market
development activities. The first builds on their announced
partnership with Cisco around secure wireless connectivity for the
'Internet of Things (IoT).' We're not modeling any revenue from
this arrangement, but Nxt-ID continues to work with Cisco on
a software/hardware combination that will provide simplified,
lower-cost and more versatile communications.
In developed markets the smartphone business has consolidated
around Apple, Samsung and Google. However, there is much more
market diversity globally. Nxt-ID continues to work to leverage
their "Samsung like" wireless magnetic payment technology with
smartphone makers large and small. In addition to the household
names there are high-volume smartphone makers in China that are open to incorporating
third-party technology for authentication and payments in which
Nxt-ID specializes and has a competitive advantage.
LogicMark and the WorldVentures flye card remain the
dominating factors this year in terms of the business and our IV
model.
Conclusion
We will get more details when the company reports full results
in late March with a management call expected in early April. The
results are consistent with our existing model so there are
currently no changes.
At the current price, the stock is trading well under 1x 2017
sales and our IV suggests an $18
price objective.
Additional Disclosures
SoundView serves as a strategic advisor to NXT-ID and provides
advisory and other services to the company including strategy
advice, company positioning, investor communication methods and
ongoing technology and market research. SoundView employees do not
have positions or other vested interest in NXT-ID stock at the time
this report was published. (see back page for more general
disclosures.)
Link to pdf report:
http://s3.amazonaws.com/Published_Research/NXTD_SV_Note_01012017.pdf
About SoundView Research
SoundView conducts independent research - mostly on emerging
technologies. We like thematic-driven companies where technology is
involved and use analysis to identify the most promising investment
opportunities.
Our business model is combination of subscription fees along
with some direct investments and advisory fees. We measure our
success by the quality of our analysis, accuracy of the conclusions
and the size and influence of our audience. We apply our own proven
approach to valuation that we call intrinsic value (IV) for
informing investment decisions and optimizing portfolio
management.
Contact:
Kris
Tuttle
SoundView Technology Group
kris@soundview.co
617-828-6462
SOURCE SoundView Technology Group