Ecommerce designer Bridgeline Digital, Inc. (NASDAQ:BLIN) is finding that despite doubling its subscription base, it’s still difficult to make a profit.
According to the results announced for the first quarter of fiscal year 2014 released Feb. 14, Bridgeline Digital’s revenue from subscription of licenses, doubled to $1.6 million in while revenue from returning clients increased by almost 42% compared to the last quarter of 2013. However, the company’s net loss for the quarter was $777,000.
Sold More Than 1,000 Licenses
On Feb. 4, Bridgeline announced that it has now sold more than 1,000 iAPPS enterprise licenses.
According to the company, the increase in iAPPS licensing has been fueled by Bridgeline's track record of developing easy-to-use, websites and web stores for customers that meet the needs of organizations across a wide range of industries, including healthcare organizations, financial institutions, associations, and even large-scale organizations such as franchises and large dealer networks.
Analyst Recommend a Buy
Taglich Bros., the one analyst firm that covers Bridgeline Digital recommend a “buy” on its stock.
Bright Future of Ecommerce
If Bridgeline’s sales follow the general surge in ecommerce, then it could be in store for a good year. In 2014, ecommerce sales will soar to nearly $250 billion, up from $155 billion in 2009, according to Cambridge-Mass research firm Forrester. Last year, online retail sales were up a healthy 11 percent, compared to 2.5 percent for all retail sales.
Web-influenced sales
While Bridgeline Digital stands to benefit directly because so many companies need to improve or launch an ecommerce presence, the company is also poised to benefit from what Forrester defines as “Web-influence sales.”
Forrester contends that $917 billion worth of retail sales last year were “Web-influenced.” It also asserts that online and Web-influenced offline sales combined accounted for 42% of total retail sales and will grow to 53% in 2014, influencing $1.4 billion worth of brick-and-mortar sales.
Bottom line: companies like Bridgeline Digital that make and sell products and services that help companies improve their online design and overall presentation will benefit greatly.
But what is of paramount importance is that Bridgeline Digital delivers its services on time and within budget. These are two of the major concerns businesses have when upgrading their online presence. According to data from Framington, Mass. Research firm International Data Corp., the rate of delivery for developing and delivering Web applications on-time, on-budget, and on-spec is very poor industry wide:
- Almost 70% of Web applications developed will never reach completion or launch.
- 50% of Web applications developed will not match the original specifications or vision.
- Web application projects can average 180% over their original budget - and take twice as long to deliver as originally planned.
BLIN stock closed at $1.12 a share on Feb. 27, down 1 cent from $ 1.13 the previous day.
Find out what could be the best investor’s move when it comes to BLIN by getting the complete report here, or by cutting and pasting the following link in your Web browser:
http://www.sixfigurestockpicks.com
Seeking Orphan Drug Patent
In other news, stem-cell research company Pluristem Therapeutics Inc.’s (NASDAQ: PSTI) share value has been rising steadily on a myriad of positive news the company has been releasing ranging from successful clinical trials to being granted new patents.
The latest good news came Feb. 20 when the Israel-based bio-tech company announced it is submitting its application to the FDA requesting the Pluristem to be granted Orphan Drug Designation for its PLacental eXpanded (PLX-PAD) cells in the treatment of severe preeclampsia.
Orphan Drug Designation may qualify a company for several benefits under the Orphan Drug Act of 1983 (ODA), as amended. These benefits may include a 7-year period of orphan drug exclusivity upon product approval, a tax credit for certain clinical testing expenses for the orphan drug, written guidance on the non-clinical and clinical studies needed to obtain marketing approval of an orphan drug, and orphan drug grants.
This come on the heels of a press release Feb. 18 in which the company announced it has been granted a new patent by the Australian Patent Office.
According to the release, patent #2007228341 covers the method and composition of matter for three-dimensional expansion of placental or adipose (fat) stromal cells, Pluristem's key technology platform. Patent claims also include methods of treatment using placental cells for numerous diseases including graft vs. host disease, heart disease, stroke, burns, loss of tissue, loss of blood, anemia, and autoimmune disorders.
Patents with similar claims have also been granted to Pluristem in Russia and in South Africa. This marks Pluristem's third patent issued in Australia and its 28th patent issued worldwide.
Positive Clinical Trial Results
In late January, Pluristem Therapeutics also released good news that results from its early/mid-stage clinical trial indicated its placenta-derived stem cells for the treatment of muscle injury were safe and provided evidence the cells might be effective in treating orthopedic injuries.
“Patients treated with PLX-PAD had a greater improved change of maximal voluntary muscle contraction force than the placebo group,” the statement said.
The trial was conducted at the Orthopedic Clinic of the Charite University Medical School under the auspices of the Paul-Ehrlich-Institute, Germany's health authority.
Approval to provide cells
Also in January, the company says it received approval from the Paul-Ehrlich-Institute (PEI), Germany's health authority, to supply cells from its advanced, fully automated, and proprietary 3D cell expansion manufacturing platform implemented at its new state-of-the-art GMP facility.
“Pluristem's new manufacturing facility has the capability to efficiently produce over 150,000 doses of PLX cells annually, which potentially translates into significant economic value,” the statement said.
Analysts’ Consensus
Of the three analyst firms that cover Pluristem Therapeutics, 1 has recommended a “strong buy,” 1 has recommended a “buy” and 1 has recommended a “hold.”
PSTI stock closed at 4.13 cents a share on Feb. 27, up 5cents from $ 4.08 the previous day.
Find out what could be the best investor’s move when it comes to BLIN by getting the complete report here, or by cutting and pasting the following link in your Web browser:
http://www.sixfigurestockpicks.com
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