Web Site
Google Finance
SEC Filing
Aug 09, 2012
2012 Q2 Data
Check list:
1.Major Business.
Satellite services: TV content distribution(95%) and MMS(5%).
IPO at 2006 at $12.
2.Balance sheet.
Recent Price: $5.24, Tangible book value: $4.62, Share outstanding: 17.35m, Market Cap: $91m.
Current asset:$59m, Current liability:$22m, Debt:0, Inventory: n/a, Cash: $34m.
Current ratio > 2.
3.Credit facility.
not important
4.Financial data by years.
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 113 | 102 | 94 | 79 | 59 | 43 | 31 | 24 | 14 | |
| Gross Profit | 26.0 | 26.0 | 29.1 | 25.5 | 20.8 | 15.8 | 11.5 | 9.7 | 5.2 | |
| SG&A | 17.2 | 15.6 | 13.9 | 10.5 | 8.8 | 6.4 | 4.1 | 3.4 | 1.8 | |
| CF-WC | 17.4 | 15 | 19.5 | 17.5 | 14.8 | 10.2 | 7.0 | |||
| CAPX | 14.7 | 15.3 | 8.1 | 26.8(1) | 6.4 | 5.9 | 3.1 | |||
| Cash | 33.2 | 35.6 | 47.6 | 40.9 | 56.7 | 52.8(2) | 3.3 | |||
| Dividend/s | 0.24 | 0.38 | 0.49 | 0.61 | 0 | 0.15 | 0.19 | 0.39 | 0 |
(2) IPO at 2006.
5.Cost structure
Leasing obligations. Flexible cost structure or fixed cost structure? Cost controls.
6.Insider holding, options, Insider trading info, share buy back.
David Rivel(CEO): 2.3m. 12.9%
Del-Ta Engineering Equipment Ltd: 6.8m. 39%. Tanhum Oren seems be the major holder.
Kardan Communications Ltd.: 4.2m 24%
7.Management compensation.
David Rivel around $370k annual base salary + bonus.
8.Employee numbers. Revenue/Employee. Compensation/Employee.
Whether employees are unionized, etc.
9.Industry comparison.
Major competitors in the same industry. Whether the business is competitive?
10.Auditor
Better be among the big four.
11.Major events.
David Rivel retired at June 2012. Now the new CEO is Avi Cohen.
12.Comments.
(1) Gross margin
Gross margin down from 37% at 2005 to 23% at 2011. The main reason might relate to transponders fill rate which is topped at 2010 at 79% and still high, that increased the price for it to lease capacity. Also sometime it has to lease extra capacity than its customer needed(dual illumination). It seems to be stabilized at 24% in recent two quarter. Need to study more to better understand this issue.
(2) CAPX
CAPX quite a lot in recent 4 years. However, based on recent 2 quarters' conferences calls, it will be $8m annually as maintaining since major updates has finished. 2012 will be $5-$8. On the other hand, its past capx seems well returned by the revenue growth.
(3) Revenue growth
It has over 10% revenue growth for main years. However, the growth speed is slowing down. 2012 estimate to be around $115-$118m which not much bigger than 2011.
(4) SG&A
Although it keeps increasing, but pretty consistent around 14%-15% of revenue.
13.Conclusion
(1) By average it should get an $9-$10m FCF each year. A fair value could be around $140-$150m in market cap which equals over $8 in price.
(2) Major risks
1) gross margin might continue to decrease. 2)Revenue might decrease in the future. 3)New CEO.
Oct. 2016
The company was acquired SES for $13.29/share earlier this year. It is a pity that I didn't check back in the past several years.
