posted
Yes, that's impressive. They're up nearly 2 million net income for the last quarter compared with losses in the millions for the previous 3 quarters. Something's changed.
Also, notice that their gross margins are really improving!!! That's the best news I've seen so far. To earn 1 million in revenue, their costs from the most recent two quarters have dropped 26% to an average of 340,000 from an average of 460,000. Next, they need to work on their operating margins. The improvements they mentioned last quarter (remote enterprise management, etc) should help with that.
posted
Their revenues and net incom looks impressive , they should put it out in a PR it would get more expoure. Has anyone looked on the finance.yahoo.com webiste , the prs on SEVI have been taken off ? ?
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posted
Yes. I'm looking toward the 0.01+ range. I am almst certain at this point that the stock will get back there. The question is how fast it will rebound.
The uptick on Friday on Monday was due to the certainty of a climb with the -e coming off. However, due to anticipation, the first part of that climb occurred prior to the return to SEVI.
During the last two days, people have been accumulating, as well as being a little cautious after being stung over the past month. For this reason, I will offer my analysis of the past few month's activity.
From Dec '05-Mar '06, it became clear that SEVI was continuing to grow aggressively, that that growth was translating into profits, and that the company was being recognized for its quality by outside groups such as achieving Microsoft Gold status and achieving the top growth rate for technology companies in Houston for the previous year by the FastTech50. The stock price soared from 0.01 to 0.07 and then settled into 0.025 with an upward trend.
In April, two things happened. First they doubled their S-8 dilution from 50 to 100 million, and the general market fell after the new Fed's comments. These two event slowed but did not drop the stock price. In May SEVI announced that it was reevaluating its '04-'05 10K due to new rules about reporting Derivatives. As it turns out, SEVI actually had a 2 million profit in derivatives at the time due to the upswing in the stock price. If they had reported that result at the time, I think the stock would have continued its upward trend. Unfortunately for the stock value, the reevaluation of the accounting took 3 months to complete.
During that time, the stock value began a decline as uncertainty arose about what the accounting reevaluation meant. Then, at the beginning of August, they again increased the dilution, but only by 50 million, which at that point was only at 20% increase (i.e. from 250 to 300 shares). Yet the stock price dropped by about 40%. And then the final blow was that the accounting reevaluation could not be completed by the filing due date and so SEVI spent September with an extra E on its name. The stock price fell by 75%.
Now for the good news. SEVI is continuing to grow its revenue and the company is still on the same upswing that was clear at the beginning of the year when the stock price had settled at 0.03. All the accounting info is out there now, and had the stock price not dropped, the derivatives would actually show up as net profit rather than loss (thus at this point I am cautiously ignoring them).
Thus, with a simple adjustment for the 2X dilution, the stock value would be 0.01+ (assuming the continued upward trend during at least some of the intervening months). This is in line with the 0.012 share value calculated by dividing their gross profits by 300 million shares.
So yes, I agree this stock should be at 0.01+ with an upward trend. That's SEVI's actual current value, so today's share price is still at a 75% discount. If the news is a prediction about future earnings, that would probably raise the value past the 0.01 level and the stock price will rebound fairly quickly. Without such news, I expect SEVI to gradually climb over the next few months simply due to its inherent value. However, I expect we'll hear something that at least hints toward an increase in future earnings.
posted
Now this is a pretty good start to the day! This just came across BusinessWire and showed up in my Ameritrade account. Not yet on Yahoo Financials or SEVI's website, so check them later to make sure it's legit. It's something new, and it's likely bigger than their big contracts with the consulting division that they announced a few months ago (but did not release the company names.)
_______________________________________ Next Hire Consultants wins Petrobras Vendor Management Agreement
By BusinessWire Last Update: 10/5/2006 7:30:22 AM Data provided by
HOUSTON, Oct 05, 2006 (BUSINESS WIRE) -- Systems Evolution (SEVI) announces today that its Next Hire Consultants division has been retained by Petrobras America, subsidiary of Petroleo Brasiliero S.A. (PBR), to provide hiring services for more than 80 engineering and support positions. "Petrobras provides a challenging opportunity and a great culture for its employees. This agreement fully utilizes our firm's service capabilities," according to Bob C. Johnson, President of Next Hire Consultants.
Ailton's Almeida, Human Resources Manager for Petrobras America states, "We selected Next Hire Consultants as the primary vendor to manage our external recruiting efforts for the Walker Ridge project because of their knowledge of the industry, proven process, methodology and staffing expertise."
About Petrobras
Petrobras (PBR) is a publicly listed company that operates on an integrated and specialized basis in the following segments of the oil, gas and energy industry: exploration and production; refining, commercialization, transportation and petrochemicals; distribution of oil products; natural gas and energy. Founded in 1953, the Company today is the world's 14th largest oil company according to Petroleum Intelligence Weekly. Leader in the Brazilian hydrocarbons sector, Petrobras has been expanding its operations to become an integrated energy company with international operations and a leader in Latin America.
About Systems Evolution
Systems Evolution Inc. ("SEVI"), http://www.systemsevolution.com, is a publicly held professional services organization founded in 1993 that provides software development solutions and managed network support through its Consulting division, a Microsoft Gold Certified Partner, and permanent placement through its Next Hire Consultants division.
posted
Next Hire Consultants wins Petrobras Vendor Management Agreement
HOUSTON, Oct 05, 2006 (BUSINESS WIRE) -- Systems Evolution (OTCBB:SEVI) announces today that its Next Hire Consultants division has been retained by Petrobras America, subsidiary of Petroleo Brasiliero S.A. (NYSE:PBR), to provide hiring services for more than 80 engineering and support positions. "Petrobras provides a challenging opportunity and a great culture for its employees. This agreement fully utilizes our firm's service capabilities," according to Bob C. Johnson, President of Next Hire Consultants. Ailton's Almeida, Human Resources Manager for Petrobras America states, "We selected Next Hire Consultants as the primary vendor to manage our external recruiting efforts for the Walker Ridge project because of their knowledge of the industry, proven process, methodology and staffing expertise."
About Petrobras
Petrobras (NYSE:PBR) is a publicly listed company that operates on an integrated and specialized basis in the following segments of the oil, gas and energy industry: exploration and production; refining, commercialization, transportation and petrochemicals; distribution of oil products; natural gas and energy. Founded in 1953, the Company today is the world's 14th largest oil company according to Petroleum Intelligence Weekly. Leader in the Brazilian hydrocarbons sector, Petrobras has been expanding its operations to become an integrated energy company with international operations and a leader in Latin America.
About Systems Evolution
Systems Evolution Inc. ("SEVI"), http://www.systemsevolution.com, is a publicly held professional services organization founded in 1993 that provides software development solutions and managed network support through its Consulting division, a Microsoft Gold Certified Partner, and permanent placement through its Next Hire Consultants division.
SOURCE: Systems Evolution Inc.
CONTACT: Systems Evolution Inc., Houston Robert Rhodes, 713-979-1600, ext. 105 investor.relations*systemsevolution.com
Copyright Business Wire 2006
********************************************************************** As of Sunday, 10-01-2006 23:59, the latest Comtex SmarTrend(SM) Alert, an
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posted
According to that news release, SEVI is going to fill all the positions of one of Petrobras Oil's new sites (Petrobras is the 14th largest oil company in the world--see above news release).
I think this contract with Petrobras may be the first time SEVI's Next Hire division has actually been "retained" to fill all the positions of an entire US branch of an international company. In the past, it's been more of a piece-meal program, where companies come to SEVI when they need to fill one spot. If this contract follows Next Hire's normal practice, they should receive fees equal to about 20% of the annual income of each person they hire. Assuming there will be a spread of income from geophysicists (~$60,000-$80,000) to executives (~$150,000+) to secrtaries (~$30,000) (this is all guessing)--let's say an average of $100,000/position and there's 80 positions . . .
100,000 x 0.2 x 80 = 1.6 million!!! (--estimate--)
That aready beats Next Hire's entire annual revenue from this past year. Also, SEVI states that this contract fully utilizes SEVI's Next Hire services, and those services include an option for full managed hiring (i.e. on an on-going basis to fill vacated positions in the future).
posted
This is already enough news for one day. Think about it--this is the tip of the iceberg for Next Hire. They just started offering this Managed Contract for hiring (as opposed to the person-by-person approach) and they've already gotten a huge bite! If they win just a couple more contracts like this, they will easily take SEVI's entire balance sheet into the ++++++++!! And SEVI announced in the fine print of their 10K that they're in the process of doubling their Next Hire staff this year (same for the consulting division).
posted
nice... Rhodes says there is more to come. this is just the beginning IMO. great things in store here, we could see .01 in the future. remember don't be greedy though:) GL
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