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HGN.CN - Halogen Software


whistlerbumps

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Halogen Software out with Q3. Posting nice Growth, but nothing crazy 8-12% and increased there Ebitda forecast for the year to 7-7,5 (from 4-5).

 

Only bought back sub 100.000 stock Q3 out of the 1.2 mio share buy-back program. So this still makes a nice support for the stock. Plenty of Cash on book, as the are also generating Cash from the operations now.

 

There Net income could have been 600.000 higher, as the used this to shut down some and restructure in there international operation. So this shouldn't effect Q4 - only positve.

 

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Third Quarter 2016 Financial and Operational Highlights:

•Recurring revenue increased 12% from Q3 2015 to $16.7 million, representing 93% of total revenue in the quarter. Total revenue increased 8% from Q3 2015 to $17.9 million.

•Net Income of $794,000, or $0.04 per diluted share, compared to a Net Loss of $3.8 million in Q3 2015.

•Adjusted EBITDA1 of $2.9 million compared with $(3.0) million in Q3 2015.

•Year to date cash flow provided from operating activities of $4.0 million compared to cash used in operating activities of $1.8 million in 2015.

•Released version 16.1 of the Halogen TalentSpace™ suite, which included further integration with the Jobvite™ platform, enhancements across several key modules and the inclusion of Halogen Learning™ Starter Edition to give all customers access to Halogen product-specific learning courseware to support user adoption.

•The addition of key customers across multiple regions and strategic verticals including: Precision Medicine Group, Marsh & McLennan Agency, City of Coronado, Motorists Mutual Insurance Company, Northern Tool + Equipment Company, Es'hailSat, Gran Tierra Energy, Fisher College of Business at The Ohio State University, Kinaxis, and Sotera Defense Solutions, Inc.

•Added executive leadership in marketing and product strategy with the appointments of Paul Fitzpatrick as Chief Marketing Officer, and David Mennie as Vice President, Product Management and Strategy.

•Continued a normal course issuer bid to purchase up to a maximum of 1,249,792 of Halogen common shares through March 13, 2017. In the third quarter of 2016, Halogen purchased and cancelled 99,700 shares for approximately $0.7 million under the current normal course issuer bid.

 

http://ir.halogensoftware.com/company/investors/investor-news/investor-news-details/2016/Halogen-Announces-Third-Quarter-2016-Results/default.aspx

 

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  • 2 months later...

Now confirmed on their website:

http://ir.halogensoftware.com/company/investors/investor-news/investor-news-details/2017/Halogen-Software-Forms-Special-Committee-to-Evaluate-Strategic-Alternatives/default.aspx

 

Halogen Software Forms Special Committee to Evaluate Strategic Alternatives

 

January 12, 2017

OTTAWA, Jan. 12, 2017 /CNW/ - Halogen Software Inc. ("Halogen" or the "Company") (TSX: HGN) today announced that in response to significant interest from third parties to acquire the Company, it has formed a special committee of independent directors to consider and evaluate various strategic alternatives to maximize shareholder value, including continuing to execute on its existing business plan. The special committee is chaired by Rob Ashe, and includes Deborah Besemer, Peter Hoult and Timothy Williams. The Company has engaged National Bank Financial as its financial advisor to assist with this process. 

 

In connection with a potential strategic transaction involving the Company, Halogen has been involved in confidential discussions with third parties and a significant shareholder. While such discussions are ongoing, no assurance can be given that any transaction will be announced or completed.

 

Halogen does not intend to make further comment in regards to this process except as required by applicable securities laws or the policies of the Toronto Stock Exchange.

 

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This seems super attractive to me. The end game of SAAS companies like this has to be selling themselves. The time to do it is when customer acquisition no longer makes financial sense, which is fast approaching for Halogen. A deal seems like it's in the best interest of everyone involved.

 

I wrote more on it here: https://valueidealog.com/2017/01/12/halogen-software-the-light-at-the-end-of-the-tunnel/

 

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http://m.obj.ca/Technology/2017-01-13/article-4719057/Update:-Analysts-say-Halogen-worth-up-to-$321M-as-takeover-talks-swirl/1

 

Analyst Nick Agostino of Laurentian Bank Securities wrote in a research note that Halogen is an attractive asset, and placed odds of an acquisition at more than 50 per cent. He calculates a potential sale price of between $11.50 and $15 per share, which would value Halogen as high as $321 million.

 

Blair Abernethy, an analyst with Industrial Alliance Services, estimated similar values of between $11 and $14 per share in a research note. Both Abernethy and Agostino assigned a “buy” rating to Halogen’s shares.

 

Halogen did not name the companies that are interested in acquiring the Ottawa firm, but Mr. Agostino told OBJ in an interview that he believes potential suitors may include traditional HR software vendors that historically focus on payroll and benefit services but are now looking to expand their presence in the talent management space.

 

He added in his note that it is likely Halogen already has an offer in hand, and is now looking to maximize value from a potential takeover.

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