Veritec Inc revenue returned to growth in FY2018: increased 53.1% vs. 52.2% decline a year earliner
10/05/2018 • About Veritec Inc (
$VRTC) • By InTwits
Veritec Inc reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -70.6%
- Veritec Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 0.0% while average EBITDA Margin was -33.3% for the sames years
- Veritec Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.0%.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 53.1%. Revenue growth showed acceleration in FY18Q4 - it increased 219.9% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 88.1 pp from -132% to -220% in 2018. During the last 5 years EBITDA Margin bottomed in FY2017 at -221%.
Gross Margin jumped on 30.4 pp from 19.9% to 50.4% in FY2018. During FY2014-FY2018 Gross Margin bottomed in FY2017 at 19.9%. SG&A as a % of Revenue dropped on 114 pp from 232% to 118% in FY2018. During the last 5 years SG&A as a % of Revenue topped in FY2017 at 232%.
Net Income margin jumped on 417 pp from -421% to -3.7% in FY2018. During FY2014-FY2018 Net Income margin bottomed in FY2017 at -421%.
Leverage (Debt)
Debt level is -6.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2018. Debt surged on 25.4% while cash jumped on 198%.
Veritec Inc has short term refinancing risk: cash is only 3.9% of short term debt.
Financial and operational results
FY ended 06/30/2018
Veritec Inc ($VRTC) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 1.635 | 0.946 | 0.681 | 0.326 | 0.498 | 53.1% |
| Gross Profit | 1.290 | 0.616 | 0.358 | 0.065 | 0.251 | 286.7% |
| SG&A | 0.611 | 0.926 | 0.727 | 0.756 | 0.589 | -22.1% |
| EBITDA | 0.491 | -0.408 | -0.374 | -0.720 | -0.352 | |
| Net Income | 0.302 | -0.907 | -1.298 | -1.370 | -0.018 | |
Balance Sheet
|
|---|
| Cash | 0.025 | 0.053 | 0.061 | 0.047 | 0.139 | 197.9% |
| Short Term Debt | 3.142 | 3.563 | 2.033 | 2.869 | 3.597 | 25.4% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.001 | 0.000 | 0.000 | 0.000 | 0.000 | |
Ratios
|
|---|
| Revenue growth | 127.1% | -42.2% | -28.0% | -52.2% | 53.1% | |
| EBITDA growth | -190.4% | -183.0% | -8.3% | 92.6% | -51.1% | |
|
|---|
| Gross Margin | 78.9% | 65.1% | 52.6% | 19.9% | 50.4% | 30.4% |
| EBITDA Margin | 30.0% | -43.1% | -54.9% | -221.1% | -70.6% | 150.5% |
| SG&A, % of revenue | 37.3% | 97.9% | 106.8% | 232.2% | 118.1% | -114.1% |
| Net Income Margin | 18.5% | -95.9% | -190.6% | -420.8% | -3.7% | 417.1% |
| CAPEX, % of revenue | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | |
|
|---|
| Net Debt/EBITDA | 6.3x | | | | |
Veritec Inc ($VRTC) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 0 | 0 | 0 | 0 | | 58.4% | 38.2% | -36.3% | 219.9% |
| EBITDA | -0 | -0 | -0 | -0 | | | | | |
| Net Income | 0 | 0 | -0 | -0 | | 102.7% | | | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | 58.2% | -47.6% | -36.8% | 197.9% |
| Short Term Debt | 3 | 3 | 3 | 4 | | 55.4% | 34.6% | 26.9% | 25.4% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 51.1% | 57.3% | 7.8% | 60.0% | | 34.8% | 58.1% | -40.2% | 53.1% |
| EBITDA Margin | -90.7% | -72.5% | -191.7% | -17.4% | | 136.2% | 131.8% | 37.7% | 207.5% |
| Net Income Margin | 261.0% | 75.1% | -568.6% | -11.7% | | 57.0% | 552.6% | 220.6% | 412.7% |
Peers in Technology Hardware, Storage &
Below you can find Veritec Inc benchmarking vs. other companies in Technology Hardware, Storage & industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Crossroads Systems Inc ($CRSS) | | -90.6% | -35.5% | -89.5% | 39,959.5% |
| Immersion Corporation ($IMMR) | | 19.8% | -9.9% | -38.7% | 217.0% |
| Boxlight Corporation ($BOXL) | | -88.5% | 503.2% | 26.4% | 47.0% |
| Pure Storage, Inc. ($PSTG) | | 308.2% | 152.4% | 67.9% | 38.6% |
| One Stop Systems, Inc. ($OSS) | | 24.0% | 32.7% | 45.9% | 34.5% |
| |
|---|
| Median (30 companies) | -16.9% | -3.2% | -4.3% | 2.1% | 4.3% |
|---|
| Veritec Inc ($VRTC) | | -42.2% | -28.0% | -52.2% | 53.1% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Immersion Corporation ($IMMR) | 99.1% | 99.3% | 99.7% | 99.4% | 99.8% |
| Pure Storage, Inc. ($PSTG) | 43.5% | 55.5% | 61.9% | 65.9% | 65.5% |
| NetApp, Inc. ($NTAP) | 62.0% | 62.6% | 60.8% | 61.3% | 62.7% |
| Avid Technology, Inc. ($AVID) | 61.4% | 60.9% | 65.0% | 57.8% | 57.9% |
| Datasea Inc ($DTSS) | | | | 39.3% | 54.4% |
| |
|---|
| Median (29 companies) | 35.6% | 35.0% | 38.5% | 39.6% | 38.3% |
|---|
| Veritec Inc ($VRTC) | 78.9% | 65.1% | 52.6% | 19.9% | 50.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Immersion Corporation ($IMMR) | 12.3% | 9.0% | -25.1% | -127.0% | 48.6% |
| Apple Inc. ($AAPL) | 33.1% | 35.3% | 32.7% | 31.2% | 30.8% |
| Western Digital Corporation ($WDC) | 20.1% | 18.7% | 12.5% | 21.4% | 27.5% |
| NetApp, Inc. ($NTAP) | 16.9% | 16.7% | 11.3% | 15.4% | 22.9% |
| Seagate Technology PLC ($STX) | 19.3% | 21.1% | 11.3% | 16.7% | 20.0% |
| |
|---|
| Median (29 companies) | 7.1% | 7.4% | 4.9% | 4.5% | 7.9% |
|---|
| Veritec Inc ($VRTC) | 30.0% | -43.1% | -54.9% | -221.1% | -70.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Hewlett Packard Enterprise Company ($HPE) | 6.6% | 6.4% | 10.8% | 10.9% | 9.6% |
| Pure Storage, Inc. ($PSTG) | 28.7% | 24.2% | 8.9% | 10.4% | 6.3% |
| 3D Systems Corporation ($DDD) | 3.5% | 3.4% | 2.6% | 4.8% | 5.9% |
| Apple Inc. ($AAPL) | 5.2% | 4.8% | 5.9% | 5.4% | 5.0% |
| Western Digital Corporation ($WDC) | 4.2% | 4.2% | 4.5% | 3.0% | 4.0% |
| |
|---|
| Median (29 companies) | 2.7% | 3.0% | 2.0% | 1.9% | 2.4% |
|---|
| Veritec Inc ($VRTC) | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Avid Technology, Inc. ($AVID) | | | | | 252.4% |
| Ionix Technology Inc ($IINX) | | | | 23.9% | 204.5% |
| Immersion Corporation ($IMMR) | 7.6% | 5.8% | -21.5% | -138.9% | 96.8% |
| HP Inc. ($HPQ) | 8.0% | 8.7% | 15.8% | 60.8% | 72.9% |
| NetApp, Inc. ($NTAP) | 12.5% | 14.8% | 7.3% | 14.0% | 28.1% |
| |
|---|
| Median (37 companies) | 5.9% | 5.4% | -0.4% | 0.9% | 2.7% |
|---|
| Veritec Inc ($VRTC) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| CPI Card Group Inc. ($PMTS) | 3.4x | 3.5x | 5.8x | | 12.4x |
| NCR Corporation ($NCR) | 4.9x | 6.6x | 2.7x | 2.3x | 5.2x |
| Avid Technology, Inc. ($AVID) | -0.7x | 3.1x | 1.7x | 5.6x | 4.8x |
| Xerox Corporation ($XRX) | 3.5x | 3.5x | 3.1x | 3.0x | 3.0x |
| Electronics for Imaging, Inc. ($EFII) | -0.2x | 1.4x | 1.3x | 1.6x | 1.7x |
| |
|---|
| Median (20 companies) | -0.4x | 0.5x | 0.2x | 0.3x | 0.6x |
|---|
