Author Topic: CAS:FP - Cast SA  (Read 3993 times)

kab60

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Re: CAS:FP - Cast SA
« Reply #10 on: July 28, 2020, 03:24:13 AM »
ESW just announced a bid to take over Canadian software company Optiva Inc (I was involved with that a couple of years ago) at a price of more than 3,5 x ev/revenue - with revenue forecast to fall 22 pct. this year. Meanwhile, Cast - which I'd venture is a better business with way less execution risk (less concentrated customers, no legacy business melting rapidly, no leap of faith in their cloud transition etc. etc.) - trades around 1 x ev/sales in 2020 despite some strong buying in Cast SA since my last post. Depending on how fast they turn profitable and convert receivables to cash the valuation is even lower.


kab60

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Re: CAS:FP - Cast SA
« Reply #11 on: July 30, 2020, 02:11:57 AM »
Prelim Q2 numbers out, looks pretty good. 80 pct. growth in SAAS revenue in H1, they're optimistic for the remainder of the year and very focused on cost. They've clearly telegraphed that they'll turn profitable (if not in 2020 then significantly more so in 2021), so I'd say the market is a bit slow to pick up on the recent developments and we're probably getting close to an inflection point.

https://www.castsoftware.com/docs/financial/pr_rs_s1_2020.pdf

CAST’s Software  Intelligence, “the  MRI  for  software,” confirmed  its  resilience  in  this  time  of  crisis,  offering managersimmediate visibility allowing for quick decision-making, the targeted cutting of costs, a rapid increase in the efficiency of development teams working on transformation and Cloud migration –important vectors in and  of  themselves  for  decreasing  infrastructure  costs –and,  finally,  the  ongoing  improvement  of  IT  systems’ resilience and security.

The success of the SaaS CAST Highlight(analysis in just a few days of application portfolios, software risks and costs, Cloud readiness, use of open-source software) was confirmed by revenue of €2Mfor the first half of the year, up 80%, and €1.4Min sales for the second quarter alone.

CAST Imaging, launched in 2019, continued to be embraced by system integrators and major groups, in particular with the goal of significant cost-cutting in just a few months by trimming unproductive workhours.

Sales via consulting firms (Boston Consulting Group, EY,etc.), the major integrators (IBM, Accenture, Cognizant, etc.) and Microsoft continue to increase and show more and more potential, which, along with the current business portfolio, allows us to be optimistic about the rest of the year. Forecasts for the second half of the year are currently for a performance similar to that of the last six months, while remaining careful about expenses and being ready for real-time adjustmentsbased on changes in the macroeconomic context.

kab60

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Re: CAS:FP - Cast SA
« Reply #12 on: September 14, 2020, 10:36:28 AM »
Almost breakeven, net cash, lots of receivables (net cash plus receivables almost half of marketcap), still expect to be profitable for the year. So basically looks pretty good but this is a 2021/2022 story. If they can't grow revenue meaningfully, they shouldn't be public, but they sound pretty bullish.

Not a lot of software plays at around 1xsales or 0,5x if one is a bit aggressive and includes receivables.

    Sept 14 (Reuters) - Cast SA <YAS.PA>:
    * H1 NET LOSS EUR 0.6 MILLION VERSUS LOSS OF EUR 3.8 MILLION
YEAR
AGO
    * WHILE THE UNCERTAIN MACROECONOMIC CONTEXT CALLS FOR
CAUTION, THE
OBJECTIVE REMAINS MORE THAN EVER TO ACHIEVE A YEAR OF GROWTH AND
PROFITABILITY
    * H1 REVENUE EUR 20.0 MILLION VERSUS EUR 18.8 MILLION YEAR
AGO
    * H1 OPERATING LOSS EUR 0.1 MILLION VERSUS LOSS OF EUR 3.4
MILLION
YEAR AGO
    * AT 30 JUNE 2020, AVAILABLE CASH WAS €11.7M AND NET CASH
WAS
€6.4M. TRADE RECEIVABLES AMOUNTED TO €17.9M

kab60

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Re: CAS:FP - Cast SA
« Reply #13 on: September 16, 2020, 01:47:00 AM »
Up nicely yesterday, popped 25% this morning and trading now halted. No idea what's up.