Acceleware (TSXV:AXE) has just recently released their financial report of the third quarter for 2011.
http://www.acceleware.com/sites/default/files/AXE_Q3_2011_Earnings_Press_Release.pdf
There are several things that stand out in this release, and all seem to have positive connotations as to where Acceleware currently stands. One of the first things that I find quite compelling, is the fact Acceleware has managed to turn the company cash flow positive, and this despite all the volatility in the global economic arena at present. Obviously a feat in itself, and not one that is the result of any one-time cash infusions, but rather a result of both sales of products and instructional classes. This fact is extremely important in my opinion, as it shows that the management is well committed, and equipped in their attempt to follow through on the claims made earlier this year, regarding the company restructuring. I fully expect we will see this trend not only continue, but ramp up as the company continues to pursue new business, additional business with existing customers, and to continue to expand their offerings of both CUDA and OpenCL training.
Acceleware was present at the Supercomputing show held in Seattle, Washington, and is considered a premiere event for any companies involved in, or with supercomputing. This afforded Acceleware the opportunity to have a presence amongst many other companies that are involved in the supercomputing space. With the show being described as well attended, and with lots of interest being shown towards Acceleware, it definitely would lead one to see the potential that could lay ahead. While there may be a general consensus that the global economy has not regained and stabilized as we would like to have seen, and many countries are experiencing financial difficulties, we should note that there are still major projects being approved and these projects are progressing. To me this is to be expected, unless one was to believe that the entire world is going to regress back in time, which even if it were possible, how would we get the global population to follow suit. Therefore, in my opinion, we can expect some pullbacks in some areas, but some technologies will continue to remain constant. One of these technologies with extreme potential would be the products that Acceleware designs, sells, and services. This, combined with their popular training classes, allows me to think that Acceleware has finally started to show they are truly a company that will continue to gain traction. How fast they gain traction is the question that many want the answer to. I believe there are many factors that could play a part in the answer to this question. For instance, if we can answer when will the global economy stabilize, or how fast will the economies of countries such as China or India grow looking forward, we might gain some type of clue. There are many predictions being made as to the economic growth in China, and most if not all, are predicting tremendous growth. If this proves true, which I firmly believe it will, then the need for technologies such as Acceleware possesses are crucial. The Chinese population is quickly moving towards a desire to live a higher standard of living, which is evidenced by the current migration from rural to urban living. The average household is currently seeing a higher income, and this in turn will lead to an increase in spending. One item that has become so commonplace in our society today is a mobile phone. This is a product that uses Acceleware's technology during the designing stages, in an effort to allow the most superior type antenna. this is just one example. Another sector that will continue to see growth I believe, is the gas and oil exploration industry. More on that in a minute.
We have already established that we do not see the world about to move back in time, despite the current economic problems we face globally right now. This brings me to talk about the next conference that Acceleware will be attending, which will be the GPU Technology Conference. This will be held in Beijing, China, on Dec. 14 - 15, 2011. GTC Asia will focus on the very latest scientific research and commercial applications in GPU computing. The agenda will feature keynotes, roundtable discussions, academic posters, and over 60 sessions over two days, as well as tutorials from NVIDIA’s engineering and research staff. GTC Asia is an important event for developers, programmers and research scientists working on complex computational problems across industries and academia. As you can see this conference will offer Acceleware a potential to develop many new relationships, as well as strengthen any they may have currently.
Oil and gas is one sector that I believe will continue to grow. For those who may agree, you are probably aware that oil and gas are still available, however, the geological settings in which it is being discovered are becoming increasingly more complex. Exploration by the Chinese is something that could potentially add to the benefits that Acceleware may experience. The avenue for this could potentially come from Paradigm, who just happens to have an office in China.
After watching how Acceleware has gone from restructuring earlier this year, and now in Q3 of 2011, we find the company cash flow positive, I see a company with a management team that has made realistic statements and has delivered on the progress they claimed. Looking forward, I truly do expect Acceleware will not only hold their traction, but I expect they will start to gain momentum. At this point, I would be extremely hard pressed to attempt to point you to a more under-valued technology company, and one with as much potential as Acceleware. For anyone who is interested in learning more about Acceleware, or in starting to do some due diligence in order to make a choice of investing or not, I strongly urge you to check out the company website which is found at, http://www.acceleware.com/.
For disclosure purposes, I have received no compensation of any kind for this post, and all opinions are my own. I do own shares in Acceleware.
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