SoundView Technology Group Issues Update on NXT-ID’s (Nasdaq: $NXTD) Two
Major Business Sections; LogicMark and WorldVentures
SoundView Technology Group (Boston) – February 2,
2017: SoundView Technology Group (http://soundview.co) releases
the following company update for NXT-ID, Inc. (NASDAQ:NXTD).
Nxt-ID (NXTD $2.62)
Business Update
Kris Tuttle, February 1,
2017
Summary
Nxt-ID reported preliminary Q4 results that were up strongly (as
expected) both sequentially and YoY. The headline number of $4.5M in revenue
compares with $3.2M in Q3 and nominal revenues a year ago. Revenues for the
full year 2016 were $7.7M compared with less than $1M in 2015. Our estimate for
2017 revenues remains $37.5M.
Here is an update on the two major business segments:
1.
LogicMark - Most of the growth in Q4 was driven by LogicMark
which continues to be a consistent and strong performer. We are expecting (and
modeling) continued linear growth for LogicMark in Q1 and Q2. We could see a
step up in LogicMark revenues beginning in Q3 with expanded distribution and
strong one-time purchase products for PERS.
2.
WorldVentures – An initial shipment of cards was delivered in Q4
for WorldVentures to complete their testing. The exact timing of the major
release of the WV flye card will
depend on the completion of tests. Nxt-ID plans to ship a larger number of
cards during Q1 so that WorldVentures can build inventory and prepare for their
launch.
In short, LogicMark is steady and growing with WorldVentures beginning
to kick in with some volume shipments.
Beyond the current business there are some meaningful market development
activities. The first builds on their announced partnership with Cisco around
secure wireless connectivity for the “Internet of Things (IoT).” We’re not
modeling any revenue from this arrangement, but Nxt-ID continues to work with Cisco on a software/hardware
combination that will provide simplified, lower-cost and more versatile
communications.
In developed markets the smartphone business has consolidated around
Apple, Samsung and Google. However, there is much more market diversity
globally. Nxt-ID continues to work to leverage their “Samsung like” wireless
magnetic payment technology with smartphone makers large and small. In addition
to the household names there are
high-volume smartphone makers in China that are open to incorporating
third-party technology for authentication and payments in which Nxt-ID
specializes and has a competitive advantage.
LogicMark and the WorldVentures flye
card remain the dominating factors this year in terms of the business and our
IV model.
Conclusion
We will get more
details when the company reports full results in late March with a management
call expected in early April. The results are consistent with our existing
model so there are currently no changes.
At the current
price, the stock is trading well under 1x 2017 sales and our IV suggests an $18
price objective.
Additional Disclosures
SoundView serves
as a strategic advisor to NXT-ID and provides advisory and other services to
the company including strategy advice, company positioning, investor
communication methods and ongoing technology and market research. SoundView
employees do not have positions or other vested interest in NXT-ID stock at the
time this report was published. (see back page for more general disclosures.)
Link to pdf report
ABOUT SOUNDVIEW RESEARCH
SoundView
conducts independent research – mostly on emerging technologies. We like
thematic-driven companies where technology is involved and use analysis to
identify the most promising investment opportunities.
Our business
model is combination of subscription fees along with some direct investments
and advisory fees. We measure our success by the quality of our analysis,
accuracy of the conclusions and the size and influence of our audience. We
apply our own proven approach to valuation that we call intrinsic value (IV)
for informing investment decisions and optimizing portfolio management.
Contact:
Kris Tuttle
SoundView Technology Group
617-828-6462
Forward-Looking Statements for
NXT-ID: This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements reflect management's current expectations, as of the
date of this press release, and involve certain risks and uncertainties.
Forward-looking statements include statements herein with respect to the
successful execution of the Company's business strategy. The Company's actual
results could differ materially from those anticipated in these forward-looking
statements as a result of various factors. Such risks and uncertainties
include, among other things, our ability to establish and maintain the
proprietary nature of our technology through the patent process, as well as our
ability to possibly license from others patents and patent applications
necessary to develop products; the availability of financing; the Company's
ability to implement its long range business plan for various applications of
its technology; the Company's ability to enter into agreements with any
necessary marketing and/or distribution partners; the impact of competition,
the obtaining and maintenance of any necessary regulatory clearances applicable
to applications of the Company's technology; and management of growth and other
risks and uncertainties that may be detailed from time to time in the Company's
reports filed with the Securities and Exchange Commission.
NXT- ID
Inc Contact:
Media:
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