BOSTON, April 18, 2018 /PRNewswire/ --
SoundView Technology Group (http://soundview.co) releases the
following company update for NXT-ID, Inc. (NASDAQ: NXTD).
NXT-ID (NXTD $1.97)
EARLY 2018 OUTLOOK
APRIL 18, 2018
Kris Tuttle,
kris@soundview.co
Excerpt:
April
2018 Update
2017 was a busy year for Nxt-ID. Revenues tripled to
$23.3M from $7.3M in 2016. It took some expensive financing
to get it all done but now the company is in a much better position
and has cleaned up the balance sheet considerably. The last
component is a refinancing of their revolving debt which we believe
will come soon (as per recent management guidance.) This final step
will dramatically reduce their interest payments.
(For investors new to the NXTD story we recommend you read the
recent SEC 10K form - the first
sections are well-written and the most current detailed overview of
the business. Here's a link to the PDF of the NXTD 10K. )
We expect they will build on their success in 2018 - primarily
in expanding the FitPay business and extending their LogicMark
franchise more deeply into the healthcare industry.
But investors should be reminded that the company is rooted in
authentication and payments technology which allows them to
continue to innovate around new devices and payment devices. The
advent of blockchain technologies and crypto currencies has opened
up an even broader range of business development opportunities. In
2018 we expect Nxt-ID to debut a new next-generation general
purpose payment device.
LogicMark
LogicMark has been a steady growing business, making consistent
quarterly revenue progress. In 2018 we expect more of the same
backed by a broad range of updated products and expanded
distribution and more direct-to-consumer offerings that don't
require monthly service fees.
LogicMark is also working on expanding their role in the
healthcare industry from personal emergency response (PERS) units
into solutions for patient monitoring and chronic care. For
example, hospitals want to discharge patients as soon as possible
(often too soon) but face penalties and unreimbursed expenses if
that patient has to return to the hospital with a relapse. By
discharging patients with improved monitoring technology, the
hospital can reduce the frequency and severity of relapses and in
many cases avoid re-admission.
At this point we are only modeling continued expansion of the
PERS business so we'll be watching how the company develops their
healthcare market opportunity. The area is ripe, but we know that
hospitals and care-providers can be very deliberate in their
adoption of new technologies and are often hampered by regulations
and prior investments in large legacy systems.
There are some positive trends in healthcare that make us
cautiously optimistic. First of all, the pressure on the
already-creaking system is unrelenting. An aging population is only
making current inefficiencies harder to endure. On the technology
side we have seen real growth in modern methods like Telehealth.
One example is the success of Teledoc which now has 23 million
paying members and grew revenue last year 89% to $233M. The company expects to do $355M in revenue in 2018.
Fit Pay
More Fit Pay enabled devices will be rolling out in 2018.
Existing customer Garmin is adding "Garmin
Pay" deeper into their product portfolio and it should be
available across more of their lineup by the end of the year.
We also expect to see shipments of more innovative wearable
devices like the Token Ring LINK. We believe there is significant
consumer demand for some kind of "digital cash" option outside of
the smartphone. So far nothing has fit the bill and seen
significant adoption but a raft of new devices may change this.
Fit Pay has their own offering, the Flip, which is scheduled to
begin shipping towards the end of Q2. We think about Flip as kind
of an "EZPass" for your daily life. Small purchases should be easy
and anonymous.
The Flip offering is about recurring account fees but they will
be small in magnitude. In 2018 this is still more about "design
wins" which translate into long-term recurring revenue streams in
the form of small activation and account fees.
We expect some significant new customers for Fit Pay in 2018,
possibly as early as Q2. These will also reinforce the positioning
Fit Pay as a platform and a strategic asset. Any device-maker
outside of Apple and Google that wants to do payments would
consider Fit Pay to be a key piece of proven infrastructure.
Link to full report:
http://s3.amazonaws.com/PUBLISHED/NXT-ID_NXTD_SV_Note_APR_2018.pdf
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IMPORTANT DISCLOSURES
1. The analysts who prepared this report certify that the
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"sell," or "hold"
ratings. This report is intended strictly for informational
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Contact:
Kris Tuttle
SoundView Technology Group
kris@soundview.co
+1-617-828-6462
SOURCE NXT-ID, Inc. & SoundView Technology Group