- FY2014 EBITDA guidance is virtually unchanged at $21M-$23M vs. earlier $21M-26M guidance which demonstrates greater-than-expected operating efficiency off a lower but still growing revenue base.
- The decline in the legacy-rich media business is overshadowed by rapid 30% quarterly growth in the core business that exceeded expectations and provides clear long-term visibility.
- $15M share repurchase program to commence early next week along with a potential new authorized share buy back that is currently in active discussion with the board and management.
- Recent sale of Sapient to Publicis for an overall comparable ad tech business was at a multiple 5x richer than Sizmek’s current valuation, leaving room for significant upside.
- New 8-K filing allows for third-party director compensation. This almost always precedes significant shareholder activism as the board members can be tied to short-term share price gains.
Without much fanfare and most ad tech eyes on high flying TubeMogul (NASDAQ:TUBE), Sizmek (NASDAQ:SZMK) released its Q3 earnings report on Thursday after the bell. A short but informative 22-minute conference call followed which was capped off by the 10-Q released a few minutes after the end of the call. Now we have all the information we need to make an informed decision. Let’s break it all down.
Read my entire report at Seeking Alpha: http://seekingalpha.com/article/2681765-sizmek-q3-report-illustrates-a-deep-value-opportunity-with-long-term-visibility