TUCKER ANTHONY REITERATES STRONG BUY
Q1 RESULTS
Revenues were above our estimate as DVNT expanded from one paying customer in October(RIM) to four in the January quarter. (RIM, WS Communications, I3Mobile and Nortel). At the bottom line, the loss of 0.14 per share was right in line on our estimate. Cash amount to $10 million, there is no debt and shareholder equity totaled 10.8 million.
For those that know the story, the near term objective is for DVNT to align itself with as many application developers as possible to set the stage for the flow of recurring revenues 12-24 months down the road. While revenues are important, we view the customer count as more indicative of the efficacy of DVNT's technology. And for investors who have been waiting for validation via a major, high profile customer affiliation, look no further than NORTEL who is licensing the company's Permit server.
NEW INITIATIVES:
DVNT is not standing still. They will be announcing very soon a secure wireless E-Mail initiative, targeting RIM and Palm customers as well as introducing PKI portal that will provide a bridge between DVNT's wireless PKI solution and wire line solution from Entrust, VRSN and others. Customers who are looking for a seamless wired/wireless PKI infrastructure will not have to wait for wireless offerings from the major wire line PKI vendors.
STREET.COM
The article was very misleading, leaving readers with the impression that DVNT was going to derive ongoing revs from RIMM, That was never the case, as device manufacturers fall into the "one time" rev. category, as to application developers. Other inaccurate comments from the article...
"The RIM pager does not use Passport products." Correct. RIMM does not incorporate servers into their interactive messaging systems. They do incorporate DVNT's client certificate technology. According to RIMM, DVNT deal had produced no customers for DVNT...Start with FirstCall who is offering wireless solution using DVNT and RIMM. No product for public consumption..See First Call.
STRONG BUY REINTERATED.. |
