View Systems Inc reports 553% Net Income growth in 2018 while 5.3% Revenue decline
06/17/2019 • About View Systems Inc (
$VSYM) • By InTwits
View Systems Inc reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- View Systems Inc is a company in decline: 2018 revenue growth was -5.3%, 5 years revenue CAGR was -43.2%
- The company operates at negative EBITDA Margin: -77.7%
- View Systems Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 is 0.0%. Average EBITDA Margin for the same period was -277.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
View Systems Inc's Revenue decreased on 5.3%. Revenue decline showed acceleration in 18Q4 - it was 77.7% YoY. During 2014-2018 Revenue growth bottomed in 2016 at -71.2% and was accelerating since that time. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 336 pp from -414% to -77.7% in 2018.
SG&A as a % of Revenue surged on 100 pp from 35.9% to 136% in 2018.
Net Income margin jumped on 3,416 pp from -591% to 2,825% in 2018.
Leverage (Debt)
Debt level is -6.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2018. Debt dropped on 37.5% while cash dropped on 100%.
View Systems Inc has short term refinancing risk: cash is only 0.0% of short term debt.
Financial and operational results
FY ended 12/31/2018
View Systems Inc ($VSYM) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 0.392 | 0.202 | 0.058 | 0.034 | 0.033 | -5.3% |
| Gross Profit | 0.307 | 0.154 | 0.057 | | | |
| SG&A | | 0.133 | 0.045 | 0.012 | 0.044 | 259.4% |
| EBITDA | -1.310 | -0.386 | -0.136 | -0.142 | -0.025 | |
| Net Income | -1.338 | -0.419 | -0.191 | -0.203 | 0.918 | |
Balance Sheet
|
|---|
| Cash | 0.013 | 0.003 | 0.000 | 0.000 | 0.000 | -100.0% |
| Short Term Debt | 0.080 | 0.061 | 0.050 | 0.634 | 0.396 | -37.5% |
| Long Term Debt | 0.011 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Ratios
|
|---|
| Revenue growth | -28.8% | -48.4% | -71.2% | -41.1% | -5.3% | |
| EBITDA growth | -12.7% | -70.5% | -64.8% | 4.3% | -82.2% | |
|
|---|
| Gross Margin | 78.3% | 76.1% | 98.0% | | | |
| EBITDA Margin | -334.0% | -190.9% | -233.4% | -413.5% | -77.7% | 335.8% |
| SG&A, % of revenue | | 65.7% | 77.2% | 35.9% | 136.1% | 100.2% |
| Net Income Margin | -341.2% | -206.9% | -327.0% | -590.8% | 2,825.2% | 3,415.9% |
|
|---|
View Systems Inc ($VSYM) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 0 | 0 | 0 | 0 | | 142.8% | 46.4% | -6.5% | -77.7% |
| EBITDA | -0 | -0 | -0 | 0 | | | | | 308.4% |
| Net Income | -0 | 1 | 0 | -0 | | | | | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | 11,578.5% | -88.5% | -100.0% | -100.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | | 25.6% | 61.0% | 124.4% | -37.5% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| EBITDA Margin | -159.3% | -62.8% | -202.8% | 5,936.1% | | 84.3% | 214.5% | 575.0% | 5,611.8% |
| Net Income Margin | -869.0% | 3,045.2% | 1,955.3% | -9,161.4% | | -518.7% | 3,362.1% | 2,405.9% | -8,309.9% |
Peers in Electronic Equipment & Instrum
Below you can find View Systems Inc benchmarking vs. other companies in Electronic Equipment & Instrum 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 |
|---|
| SGOCO Group, Ltd ($SGOC) | | -95.6% | 163.9% | -99.0% | 2,998.0% |
| Hickok Inc ($HICKA) | | -7.2% | 13.5% | 258.4% | 178.7% |
| Electro Scientific Industries, Inc. ($ESIO) | | -12.2% | 15.9% | -12.7% | 128.5% |
| Microvision, Inc. ($MVIS) | | 163.6% | 60.7% | -34.7% | 82.8% |
| Ipsidy Inc ($IDTY) | | | | | 66.2% |
| |
|---|
| Median (62 companies) | | 4.5% | 1.2% | 4.6% | 11.0% |
|---|
| View Systems Inc ($VSYM) | | -48.4% | -71.2% | -41.1% | -5.3% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intellicheck, Inc. ($IDN) | 58.2% | 57.1% | 80.0% | 85.5% | 91.3% |
| Image Sensing Systems, Inc. ($ISNS) | 74.7% | 77.1% | 71.0% | 79.9% | 80.9% |
| National Instruments Corporation ($NATI) | 74.4% | 74.1% | 74.5% | 74.5% | 75.4% |
| Cognex Corporation ($CGNX) | 77.9% | 77.2% | 75.2% | 75.6% | 74.4% |
| Applied DNA Sciences Inc ($APDN) | | | 82.2% | 77.3% | 69.1% |
| |
|---|
| Median (62 companies) | 41.7% | 41.8% | 40.1% | 41.7% | 40.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Cognex Corporation ($CGNX) | 32.9% | 30.1% | 31.9% | 36.0% | 30.1% |
| Coherent, Inc. ($COHR) | 14.2% | 16.7% | 18.9% | 24.9% | 26.6% |
| Hollysys Automation Technologies, Ltd. ($HOLI) | 21.3% | 26.9% | 23.5% | 16.1% | 23.9% |
| Electro Scientific Industries, Inc. ($ESIO) | -10.1% | -19.1% | -2.0% | -17.8% | 23.1% |
| FLIR Systems, Inc. ($FLIR) | 20.7% | 22.8% | 21.3% | 20.0% | 21.7% |
| |
|---|
| Median (61 companies) | 5.5% | 5.2% | 3.4% | 5.1% | 3.5% |
|---|
| View Systems Inc ($VSYM) | -334.0% | -190.9% | -233.4% | -413.5% | -77.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| SGOCO Group, Ltd ($SGOC) | 0.1% | 0.0% | 0.0% | 0.0% | 154.6% |
| Wrap Technologies Inc ($WRTC) | | | | | 61.4% |
| ClearSign Combustion Corporation ($CLIR) | | 80.3% | 22.1% | 17.4% | 17.7% |
| LightPath Technologies, Inc. ($LPTH) | 16.8% | 5.0% | 6.5% | 7.8% | 7.7% |
| Giga-tronics Inc ($GIGA) | 1.7% | 0.1% | 1.3% | 0.3% | 7.0% |
| |
|---|
| Median (61 companies) | 1.9% | 2.0% | 2.1% | 1.7% | 2.3% |
|---|
| View Systems Inc ($VSYM) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Evans & Sutherland Computer Corp ($ESCC) | | | 83.3% | 39.6% | 55.3% |
| Electro Scientific Industries, Inc. ($ESIO) | -11.7% | -19.7% | -7.1% | -22.9% | 31.5% |
| Coherent, Inc. ($COHR) | 9.9% | 13.1% | 15.6% | 24.0% | 21.5% |
| Zebra Technologies Corporation ($ZBRA) | 3.3% | 0.9% | 2.2% | 10.2% | 20.8% |
| Cognex Corporation ($CGNX) | 18.3% | 15.6% | 17.7% | 25.6% | 20.1% |
| |
|---|
| Median (73 companies) | 3.3% | 2.2% | 2.1% | 2.6% | 0.9% |
|---|
| View Systems Inc ($VSYM) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Itron, Inc. ($ITRI) | 2.1x | 1.9x | 1.0x | 2.0x | 12.3x |
| Track Group Inc ($TRCK) | | | | | 12.2x |
| Mesa Laboratories, Inc. ($MLAB) | 0.7x | 1.1x | 1.7x | 2.0x | 3.5x |
| Trimble Inc. ($TRMB) | 1.3x | 1.7x | 1.1x | 1.3x | 3.4x |
| MTS Systems Corporation ($MTSC) | -0.0x | -0.4x | 5.8x | 3.9x | 3.2x |
| |
|---|
| Median (36 companies) | -0.8x | -0.9x | -0.8x | -0.7x | -0.9x |
|---|
