About The Company:
SYRX is headquartered in Palo Alto, California, and through its subsidiaries, provides data analytics and location based solutions and services to commercial and government customers worldwide.
The company operates through four segments: IT Commercial, IT Government, eSolutions, and Location-Based Technology.
SYRX's IT Commercial segment provides enterprise computing and storage, Big Data products and services, virtualization, business continuity, networking and information technology business consulting services, and other related products and services.
SYRX's IT Government segment offers information technology and telecommunications solutions and services primarily to government agencies.
These include systems integration and consulting, such as custom application/software design, architecture and development, data center design and operation, command control, computer communication, intelligence system consulting, program management, and security solutions and other related products and services primarily to government agencies.
SYRX's eSolutions segment offers Internet based hosting eServices to its customers by providing cloud-based data analytics and enterprise solutions to the media, publishing, and entertainment industries.
SYRX's Location-Based Technology segment provides mobile security and analytics platform for wireless and cellular devices that detects, monitors, and manages the content and behavior of smartphones, tablets, laptops, and other mobile devices based on their location and user.
Recent Developments:
SYRX announced on October 27, 2015, that it has secured a $1 million engagement with a US Government agency for the company’s AirPatrol ZoneDefense mobile device detection and locationing system.
ZoneDefense will be used to help secure sensitive buildings from cybersecurity and data leakage threats posed by rogue mobile devices such as smartphones, tablets and other items capable of communicating and transferring data outside of secured networks.
“Unknown and rogue mobile devices are a serious threat to information security because they can operate undetected, and bypass normal security protocols using cellular, Bluetooth or ad hoc WiFi networks,” said Nadir Ali, CEO of SYRX. “After extensive trials this agency selected AirPatrol ZoneDefense to help secure its facilities. I believe this is a testament to ZoneDefense’s ability to detect and accurately locate any wireless device operating within a monitored area.”
ZoneDefense is a mobile device security system that detects and monitors cellular, WiFi and Bluetooth devices and triggers specific security policies based on the identity of the device and its location.
ZoneDefense customers include federal government agencies, universities, hospitals, financial firms and global enterprises among others.
SYRX expects the ZoneDefense installation to begin in mid-November and be completed by year’s end.
SYRX announced on October 30, 2015, that Driscoll’s, a leading grower of fresh fruits worldwide, has chosen Sysorex to upgrade its enterprise resource planning (ERP) systems with a high performance storage architecture to keep pace with the company’s growth.
“For global producers like Driscoll’s, ERP systems are central to business operations and having the high performance systems that can handle those massive data volumes day in and day out is critical,” said Bret Osborn, Chief Sales Officer for SYRX. “We’re very pleased that Sysorex, with its deep technical expertise and ability to deliver on mission critical projects like this, was chosen for this engagement,” he said.
This is the fourth project that Sysorex has performed for Driscoll’s in 2015.
SYRX expects to complete it prior to the end of this year.
SYRX announced on November 16, 2015, a new engagement with a California-based Fortune 500 health care services provider to deliver IT infrastructure and consulting services for the company’s IT modernization effort.
The project’s scope includes designing, deploying and integrating advanced computer systems and software architecture that will host business critical information migrating from the company’s legacy mainframe systems.
The project has a total value of approximately $787,000.
This is the third such engagement between the two companies this year.
In May 2015, SYRX completed a $1.9 million critical infrastructure project aimed at overhauling the reliability and security of the health care provider’s tier one business systems and data repositories.
In July 2015, SYRX implemented an advanced systems architecture to ensure the reliability and security of the company’s proprietary health care systems.
Company Financials:
Total revenues for the three months ended September 30, 2015 were $14.9 millioncompared to $14.3 million for the comparable period in the prior year.
The $600,000 increase in revenues, or approximately 4.2%, was primarily attributable to an increase in Professional Services revenue.
Total third quarter 2015 revenue included $10.3 million of Storage and Computing revenue, $871,000 of SaaS revenue, $487,000 of Mobile, IoT and Big Data Products revenue and $3.2 million of Professional Services revenue.
Total gross profit for the three months ended September 30, 2015 was $4.4 millioncompared to $4.3 million for the comparable period in the prior year.
The gross profit margin for the three months ended September 30, 2015 was approximately 30% compared to approximately 30% for the three months ended September 30, 2014.
Market Outlook:
From manufacturers looking to gain greater insights into streamlining production, reducing time-to-market and increasing product quality to financial services firms seeking to upsell clients, Data Analytics is now essential for any business looking to stay competitive.
Marketing is going through its own transformation, away from traditional tactics to analytics- and data-driven strategies that deliver measurable results.
Analytics and the insights they deliver are changing competitive dynamics daily by delivering greater acuity and focus.
The Data Analytics industry is projected from grow from USD $2.2B in 2013 to $3.4B in 2018, attaining a 9.9% CAGR in the forecast period.
The Location Based Services (LBS) and Real-Time Location Systems (RTLS) markethas grown considerably over the past few years and is expected to grow further in the years to come.
The major areas of opportunities for these systems include navigation, local search, enterprise services, mobile advertisements via LBS, location-specific health information, tourism, consumer tracking, and other location-based Business Intelligence (BI).
Government initiatives are playing a vital role in supporting the growth, and increasing the adoption; as well as motivating the vendors and startups to venture into this fast growing market.
The overall market is expected to grow from USD 11.36 billion in 2015 to USD 54.95 billion by 2020, at a CAGR of 37.1%.
Technical Analysis:
SYRX just hit a new 52-week low of $0.56 per share (two days ago) on November 24, 2015..
The company has already rebounded to $0.60 per share, and it appears that now is the perfect time for us to capitalize!
Experts tell us that the data analytics and location based solutions and services industries are set to grow expotentially in the years to come, and we strongly believe that this NASDAQ-listed stock is set to continue its rally off the bottom.
SYRX has a tiny float of only 14.57M which is worth the equivalent of just $8.74M, giving us the expectation that the company will continue to move up the chart with ease!
SYRX boasts a 52-week high price of $3.07 per share that is +411.67% more than its current price.
We mentioned earlier that SYRX has a striking resemblance to QKLS, which we alerted it on October 16th, and watched it run more than +116.49% up the chart!
This company has all the makings of a huge winner!
Make sure you add SYRX to the top of your watchlist right now, and have it pulled up on your trading screen tomorrow when the clock strikes 9:30am EST!
(*Remember to use a Stop-loss Order to protect your gains, as well as limit possible losses.)
For more information on SYRX, please visit their website: www.Sysorex.com
