W) MRBA quick and loose
Rated a Watch
Develop, market and support Internet-based software management solutions that enable companies to expand their market reach, streamline business processes and strengthen relationships with customers, business partners and employees. Marimba, Inc. is a leading provider of Internet infrastructure management solutions, enabling companies to leverage the Internet to deliver more powerful and cost-effective applications and services to their customers, employees and business partners. Marimba's Castanet product family provides an efficient and reliable infrastructure by which enterprises can distribute, update and manage applications and content over corporate intranets, extranets and the Internet. Marimba's Timbale product family addresses the unique management challenges inherent in server-based computing, including content replication and precise deployment control across heterogeneous server platforms.
25-Jul-00 AFTER THE CLOSE
Marimba (MRBA) 22 1/16 +7/16: -- Update -- Company announced that John Olsen has been named president and chief executive officer, succeeding the company's co-founder Kim Polese, who becomes chairman and chief strategy officer of the company. Olsen was most recently president of the Design Realization Group of Cadence Design Systems, Inc.(CDN);
25-Jul-00 AFTER THE CLOSE
Marimba (MRBA) 22 1/16 +7/16: Reports Q2 earnings of $0.06 a share, $0.07 better than the First Call consensus of ($0.01); revenues rose 75.9% to $12.12 mln from a year-ago of $6.89 mln
25-Apr-00 AFTER THE CLOSE
Marimba Inc. (MRBA) 29 7/8 +5 1/16: Reports Q1 loss of $0.01 a share, $0.01 above the First Call consensus of ($0.02), vs year-ago loss of $0.12; revenues rose 72.4% to $10.567 mln from a year-ago of $6.131 mln
04-Apr-00 11:00 -- 12:00 ET
Marimba (MRBA) 33 1/2 -3 1/8: AG Edwards initiates with an ACCUMULATE rating to reflect the volatility of the Internet sector and heightened expectations for Marimba's future results. Price objective range is $55 to $60.
06-Mar-00 12:00 -- 13:00 ET
Marimba (MRBA) 59 1/4 +2 3/4: Dain Rauscher Wessels raises price target from $55 to $85 saying sales of Castanet appear strong and new products should serve as catalyst; rating is BUY.
20-Jan-00 12:00 -- 13:00 ET
Marimba (MRBA) 50 1/2 - 1/4: Morgan Stanley Dean Witter upgrades Internet-based software management solutions provider from "neutral" to "outperform" as they anticipate an expanded strategy and broader product portfolio in 1H00.....
19-Jan-00 10:00 -- 11:00 ET
Marimba (MRBA) 44 15/16 +4 11/16: Morgan Stanley Dean Witter upgrades Internet infrastructure services provider from "neutral" to "outperform".....
26-Jul-00 09:44 ET
Marimba (MRBA) 24 1/4 +2 3/16 (+10%): Gaining ground after reporting Q2 earnings of $0.06 a share, 7 cents above the First Call mean; revenues rose 75.9% to $12.12 mln.
26-Jul-00 12:20 ET
Marimba (MRBA) 22 1/4 +3/16: Okay maybe the gain isn't spectacular, but the stock is up in an otherwise bleak day for techs... MRBA trading higher in response to better than expected earnings news... After yesterday's close, this provider of Internet infrastructure management solutions reported a gain of $0.06 v. consensus estimate of ($0.01)... Revenues, bolstered by the introduction of company's Timbale product line and by the continued success of its Castanet line, rose by 76% yoy and 14% sequentially... Typically when a company beats the consensus view by such a wide margin the stock responds a little more favorably... Given the lack of bullish response should MRBA bulls be nervous... No... And here's why... As we noted above, general market conditions are soft, so even companies with good news are struggling to stay afloat... Secondly, in addition to strong earnings the company announced a change in management... Co-founder and CEO Kim Polese announced that she would be assuming the roles of Chairperson and Chief Strategy Officer... Taking her place as CEO will be John Olsen, former president of the Design Realization Group of Cadence Design Systems... While the management change has some investors worried (especially in light of other changes recently), Briefing.com contends that the move should be viewed as a positive... Polese, after getting the company public and turning it profitable now hands the day-to-day management responsibilities over to a person with more operational expertise... Knowing one's own limitations is a key attribute in a successful manager, and Polese is to be credited for making the move... So as the market tone improves, look for MRBA to build on today's gain... Technically, a double bottom formation suggests that the stock has upside potential to the 27-28 area over the next few months... However, the stock should run into resistance in its effort to get past this ceiling... Not only is there plenty of overhead supply, but the Novadigm lawsuit will continue to keep a lid on the near-term upside... Novadigm's patent infringement suit against MRBA to be heard in November... Marimba has warned that a decision in Novadigm's favor would "seriously harm its business and operating results." -- Robert Walberg, Briefing.com
26-Apr-00 12:46 ET
Marimba Inc. (MRBA) 19 11/16 -10 3/16: No longer are investors impressed with a high profile CEO. They also care little if the company does not make money. While this Internet software management solutions provider was not expected to report a profit in its latest quarter, it seems that investors had been hoping for a break-even period. Certainly, they expected revenues to continue to expand at a very quick pace as the company already trades at a very lofty price to sales ratio. Last night, Marimba reported that it lost $0.01 per share in Q1, excluding the amortization expense for deferred stock compensation, one cent narrower than the First Call estimate, and significantly improved from year-ago loss of $0.12 per share. However, the loss equalled that reported in the prior quarter when sales totaled $10.066 million. Revenues for the latest period expanded by 72.4% to $10.567 million, but on a sequential basis, they were only up 5%, something that worries investors as its quarterly year-over-year growth was also below the 84% pace posted in 1999. And while the company seems to be complying with its strategy to broaden its portfolio offerings by releasing its Tmbale product line and also introducing a new version of Castanet for Windows2000, the slower sequential top line growth has caused investors to exit the stock. Not that this wasn't already occurring as the stock has been on a downward slope for the past several weeks. However, investors are coming to realize that it may take more than a high profile developer of the Java language to make this company go. News that CFO Fred Gerson will be leaving in October of this year to pursue other interest and focus more on his family is also not comforting news for investors. While the departure seems to be friendly and orderly, the timing could have been better as the company is less than one year old as a public entity and has yet to reach critical product and sales mass. While for day traders, this issue has made money for them, for true investors, the returns have not been very positive as the stock has lost 69% of its value in less than two months and currently trades below its $20 IPO price. - Raul Nicho, Briefing.com
29-Apr-99 12:20 ET
MARIMBA INC (MRBA): Shares of Mountain View, CA-based provider of Internet-based software management solutions are scheduled to make their Wall Street debut tomorrow. Marimba's Castanet product family allows companies to distribute, update and manage applications and related data over corporate intranets, extranets and the Internet. The company was founded by several members of the original Java development team at Sun Microsystems (SUNW)...
Marimba Inc. (MRBA 18 7/8) -- Provider of Internet infrastructure management solutions... P/E 236 (FY00), 86 (FY01)... PEG 0.47... 52-week range 11 1/2 to 68 7/8.
In our June 5 article on MRBA, we predicted that after being burned by internet operators with no earnings, investors would be on the hunt for companies with an E in their P/E, and that internet infrastructure would be the first place they would look... MRBA shares surged 40% in less than a week on a sharp increase in volume... However, stock has not performed well over the past two weeks. Sharp advance on Monday leaves issue 24.7% above our highlight price, a level that we would use to take profits... Our greatest fear at this point of the quarter is being caught holding a small or mid-cap name at the time of earnings warning. Only indication at this point that there may be a problem with MRBA's quarter is the price action in the stock... Volatility, coupled with inability to break through next level of resistance, leads us to believe that there is a perception in the market that the quarter may be at risk.
Marimba Inc (MRBA 15 1/8) is a provider of Internet infrastructure management solutions that enable companies to deploy and manage e-business applications and services, which encompass business-to-business, business-to-employee and business-to-consumer communications and transactions over corporate intranets, extranets and the Internet. The company's Castanet software product family provides automated distribution, transparent updates and ongoing management of e-business applications, application-related data, documents and services throughout the extended enterprise. For example, Castanet can be used by companies and their suppliers to share inventory management information, allowing supply-chain issues to be managed in real-time.
Trading Points
The Mt. View, CA-based company is on the brink of moving into the black. For the quarter ended March 31, Marimba reported a loss of $0.01 a share, excluding amortization expense for deferred stock compensation (a loss of $0.03 including this expense). Revenues for the period increased 72% to $10.6 mln.
The company is expected to break even in the June quarter. According to a Zacks survey of five analysts, Marimba will turn profitable in the September quarter with earnings of $0.03 a share.
The company's growth rates and valuation are appealing. Marimba is expected to follow up its first full year of profitability with 2001 earnings of $0.22 a share, an increase of 180% from the $0.08 forecast for the 2000 fiscal year. That $0.22 in black ink translates to a P/E of 68.75. The 58% per annum long-term growth rate projected by Wall Street produces a PEG ratio of 1.2; which is considered cheap in era when a 2x premium to growth is viewed as reasonable.
Stock Stats
Marimba came public in April of 1999 at $20 per share, with Morgan Stanley Dean Witter leading the deal. The stock opened for trading at $59, and made an intraday high of $66 1/2 before finishing the session at $60 3/4.
The stock has traded in a range of $11.50 to $68.88 over the past year, with the issue's 52-week low occurring less than two weeks ago.
The company's float has more than doubled since the IPO, and now stands at 13.8 mln shares.
Short interest is 1.35 mln or 9.8% of the float. The days-to-cover ratio is 3.9, based on average daily volume of 346,000.
The stock is rated BUY at seven firms. There are zero STRONG BUY, NEUTRAL or SELL ratings.
EPS (0.01)a tio (0.02) to (0.01) to 0.06a briefing.com
Rev 6.9 to 8.3 to 10.1 to 10.6 to 12.1M Jun00
Chart double bottom at $12. still cascading downward.
52-Week Low on 24-May-2000 $11.50
Recent Price $16.688
52-Week High on 3-Mar-2000 $68.875
Market Capitalization $391.1M
Shares Outstanding 23.4M
Float 14.5M
Price/Book (mrq) 5.21
Price/Earnings N/A
Price/Sales (ttm) 8.64
Debt/Equity (mrq) 0.00
Total Cash (mrq) $78.4M
Short Interest As of 8-Aug-2000
Shares Short 663.0K
Percent of Float 4.6%
Shares Short (Prior Month) 880.0K
Marimba Announces Second-Quarter Results; Company Achieves Profitability; Total Revenues Increase 76% to $12.1 Million Year over Year
TUESDAY, JULY 25, 2000 4:17:00 PM EST
MOUNTAIN VIEW, Calif., Jul 25, 2000 (BUSINESS WIRE) -- Marimba, Inc. MRBA, a leading provider of Internet infrastructure management solutions, today announced financial results for its second quarter ended June 30, 2000.
Revenues for the second quarter were $12.1 million, up 76 percent from $6.9 million for the same quarter last year. Net income for the second quarter was $1.3 million, or a diluted net income per share of 5 cents, up from a net loss of $1.5 million, or a diluted net loss of 8 cents per share, for the same quarter last year. Excluding $205,000 of amortization expense for deferred stock compensation, diluted net income per share for the second quarter would have been 6 cents. Excluding $451,000 of amortization expense, net loss per share in the same quarter a year ago would have been 6 cents.
License revenues for the second quarter were $9.2 million, up 86 percent from $4.9 million for the same period a year ago. Service revenues rose to $3.0 million, up 51 percent from $2.0 million for the same quarter last year.
"The second quarter marked a milestone for us, as we reached profitability on strong revenue growth," said Kim Polese, chairman and chief strategy officer. "We have continued to successfully execute our strategy, as the market for e-business software and services accelerates. In addition, Timbale, our newly-launched server management product line, achieved early customer acceptance, and customer uses for our Castanet products continued to diversify."
Quarterly Highlights
Marimba's business highlights during the second quarter of 2000 included the following:
--Early customer acceptance of the Timbale(TM) product line,
which provides enterprises, ASPs and Internet hosting
companies with server management for the distribution of
mission-critical content across widely distributed server
farms
--Release of Timbale for Server Management by Winstar
Communications, a leading broadband services company, as an
enabling technology for its Web hosting and co-location
services
--Shipment of Timbale for Windows Terminal Service (WTS), which
provides centralized deployment control and management of all
server software used in Windows terminal services computing
environments
--Continued penetration by Castanet(R) in the fast-growing
Internet device market
--Additional new customers, including Aspect Communications,
Atlanta Journal, Washington Mutual, Intercontinental Exchange,
Internet Appliance Network (IAN), SAI Plus, and Zero G
Software
--Strong repeat business, including orders from Cable &
Wireless, Healthsouth, Intelimedic, Merinta, and Morgan
Stanley Dean Witter
--Continued balance sheet strength, with $78.4 million in cash
and investments, and total assets of $95.6 million at June 30,
2000.
Summary
Growth rate does not justify the price so it trending downward. One quarter better than the last will fix this. Breifing.com seems to follow it closely. I think it going lower but in a symetrical traingle with break out either way. Not overvalued, but has no momentum. Will run up into earnings and mid-September seems to be the time to watch it. Looking for entry around $12.
Jack |
