$RIHT news! 1Q15 Results >>
http://finance.yahoo.com/news/seethruequity-i...00320.html
NEW YORK, NY / ACCESSWIRE / June 18, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued a company update on Rightscorp, Inc. (RIHT).
The note is available here: RIHT Update Note. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will also be available on these platforms. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
Rightscorp, Inc., (OTCQB: RIHT, "Rightscorp"
is a leading champion of artists and other holders of copyrighted intellectual property. The Santa Monica, CA-based company reported fiscal 1Q15 earnings on May 7, 2015, which demonstrated continued growth both in revenue and the number of copyrights ingested over its system. We continue to see Rightscorp as establishing itself as a recognized industry player with a differentiated solution focused on the detection of repeated copyright infringement activity for digitalized media. In our view, the company has high growth potential, with the possibility of generating rapidly expanding margins if it can achieve critical mass in its industry.
-Record 1Q15 revenues of $307,904 were up 63% YoY from $188,933 - and up 27% sequentially from $241,928 in 4Q14.
-GAAP Net Income improved to $0.1mn from a loss of ($0.7mn) in the year-ago period, as earnings benefitted from a $1.0mn gain on the valuation of derivative instruments. EPS was $0.00, compared to ($0.01) in 1Q14.
-Copyrights ingested into the company's system increased by 20,000 sequentially, from 230,000 at the end of 2014 to 250,000 at the end of 1Q15
Additional highlights of the note are as follows:
Pure growth story continues
Rightscorp began the year with strong growth on a sequential and year-over-year basis. 1Q15 revenues grew by 63% from $188,933 in 1Q14 to reach $307,904 - a record for the company. We were also pleased to see strong sequential growth as well, with revenues increasing by 27% from 4Q14 levels of $241,928. We note that the company has generated triple-digit revenue growth for the last two years, with 2013 revenue increasing by 236% over 2012, and 2014 revenue increasing by 187% over 2013. If the company reaches our 2015E revenue estimates, it will make a third consecutive year of triple-digit growth.
Continued growth in revenue-generating operating metrics
We continue to see nice progress in Rightscorp's core revenue-generating operating metrics. The company ended the quarter with over 233 ISPs (including Google Fiber) cooperating with the company to stop repeat digital copyright infringement. Additionally, Rightscorp continues to grow the number of copyrights ingested into its tracking and monetization system. As of the end of March, copyrights ingested into the system were over 250,000 - a significant sequential improvement over 230,000 at the end of 4Q14. We will continue to track these metrics at Rightscorp, because as these metrics grow, Rightscorp will have access to a larger pool of copyright infringement activity to drive settlement revenues.
New CFO Cecil Bond Kyte adds leadership and experience
On June 1, 2015, Rightscorp announced that it had appointed Cecil Bond Kyte as the company's new Chief Financial Officer. We see the move as an important rounding out of the company's management team, and are encouraged by Kyte's experience in leadership roles at public companies. Most recently, Kyte served as Chairman and CEO of Save the World Air, Inc. (STWA), a California-based, publicly traded company developing innovative energy technologies. Kyte spearheaded STWA's restructuring and pioneered its development of Applied Oil Technology, a technology platform designed to advance efficiencies in oil pipeline systems. Under Kyte's stewardship, STWA grew from approximately $10mn in market capitalization in 2007 over $350mn by 2013.
Maintain price target of $0.89
We are adjusting 2015E top-line estimate to $2.5mn with EBITDA of ($2.4mn) and EPS of ($0.01). Our price target remains $0.89 for Rightscorp, which represents 456.3% upside potential from the recent market price of $0.16.
Please review important disclosures on our website at www.seethruequity.com.
About Rightscorp, Inc.
Rightscorp (RIHT) is a leading provider of monetization services for artists and holders of copyrighted Intellectual Property (IP). The Company's patent pending digital loss prevention technology focuses on the infringement of digital content such as music, movies, software, books and games and ensures that owners and creators are rightfully paid for their IP. Rightscorp implements existing laws to solve copyright infringements by collecting payments from illegal file sharing activities via notifications sent through Internet Service Providers (ISPs). The Company's technology identifies copyright infringers, who are offered a reasonable settlement option when compared to the legal liability defined in the Digital Millennium Copyrights Act (DMCA). Based on the fact that 22% of all Internet traffic is used to distribute copyrighted content without permission or compensation to the creators, Rightscorp is pursuing an estimated $2.3 billion opportunity and has monetized major media titles through relationships with industry leaders. http://www.rightscorp.com.
About SeeThruEquity
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit www.seethruequity.com.
Contact:
Ajay Tandon
SeeThruEquity
info@seethruequity.com
http://finance.yahoo.com/news/seethruequity-i...00320.html
NEW YORK, NY / ACCESSWIRE / June 18, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued a company update on Rightscorp, Inc. (RIHT).
The note is available here: RIHT Update Note. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will also be available on these platforms. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
Rightscorp, Inc., (OTCQB: RIHT, "Rightscorp"
is a leading champion of artists and other holders of copyrighted intellectual property. The Santa Monica, CA-based company reported fiscal 1Q15 earnings on May 7, 2015, which demonstrated continued growth both in revenue and the number of copyrights ingested over its system. We continue to see Rightscorp as establishing itself as a recognized industry player with a differentiated solution focused on the detection of repeated copyright infringement activity for digitalized media. In our view, the company has high growth potential, with the possibility of generating rapidly expanding margins if it can achieve critical mass in its industry. -Record 1Q15 revenues of $307,904 were up 63% YoY from $188,933 - and up 27% sequentially from $241,928 in 4Q14.
-GAAP Net Income improved to $0.1mn from a loss of ($0.7mn) in the year-ago period, as earnings benefitted from a $1.0mn gain on the valuation of derivative instruments. EPS was $0.00, compared to ($0.01) in 1Q14.
-Copyrights ingested into the company's system increased by 20,000 sequentially, from 230,000 at the end of 2014 to 250,000 at the end of 1Q15
Additional highlights of the note are as follows:
Pure growth story continues
Rightscorp began the year with strong growth on a sequential and year-over-year basis. 1Q15 revenues grew by 63% from $188,933 in 1Q14 to reach $307,904 - a record for the company. We were also pleased to see strong sequential growth as well, with revenues increasing by 27% from 4Q14 levels of $241,928. We note that the company has generated triple-digit revenue growth for the last two years, with 2013 revenue increasing by 236% over 2012, and 2014 revenue increasing by 187% over 2013. If the company reaches our 2015E revenue estimates, it will make a third consecutive year of triple-digit growth.
Continued growth in revenue-generating operating metrics
We continue to see nice progress in Rightscorp's core revenue-generating operating metrics. The company ended the quarter with over 233 ISPs (including Google Fiber) cooperating with the company to stop repeat digital copyright infringement. Additionally, Rightscorp continues to grow the number of copyrights ingested into its tracking and monetization system. As of the end of March, copyrights ingested into the system were over 250,000 - a significant sequential improvement over 230,000 at the end of 4Q14. We will continue to track these metrics at Rightscorp, because as these metrics grow, Rightscorp will have access to a larger pool of copyright infringement activity to drive settlement revenues.
New CFO Cecil Bond Kyte adds leadership and experience
On June 1, 2015, Rightscorp announced that it had appointed Cecil Bond Kyte as the company's new Chief Financial Officer. We see the move as an important rounding out of the company's management team, and are encouraged by Kyte's experience in leadership roles at public companies. Most recently, Kyte served as Chairman and CEO of Save the World Air, Inc. (STWA), a California-based, publicly traded company developing innovative energy technologies. Kyte spearheaded STWA's restructuring and pioneered its development of Applied Oil Technology, a technology platform designed to advance efficiencies in oil pipeline systems. Under Kyte's stewardship, STWA grew from approximately $10mn in market capitalization in 2007 over $350mn by 2013.
Maintain price target of $0.89
We are adjusting 2015E top-line estimate to $2.5mn with EBITDA of ($2.4mn) and EPS of ($0.01). Our price target remains $0.89 for Rightscorp, which represents 456.3% upside potential from the recent market price of $0.16.
Please review important disclosures on our website at www.seethruequity.com.
About Rightscorp, Inc.
Rightscorp (RIHT) is a leading provider of monetization services for artists and holders of copyrighted Intellectual Property (IP). The Company's patent pending digital loss prevention technology focuses on the infringement of digital content such as music, movies, software, books and games and ensures that owners and creators are rightfully paid for their IP. Rightscorp implements existing laws to solve copyright infringements by collecting payments from illegal file sharing activities via notifications sent through Internet Service Providers (ISPs). The Company's technology identifies copyright infringers, who are offered a reasonable settlement option when compared to the legal liability defined in the Digital Millennium Copyrights Act (DMCA). Based on the fact that 22% of all Internet traffic is used to distribute copyrighted content without permission or compensation to the creators, Rightscorp is pursuing an estimated $2.3 billion opportunity and has monetized major media titles through relationships with industry leaders. http://www.rightscorp.com.
About SeeThruEquity
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit www.seethruequity.com.
Contact:
Ajay Tandon
SeeThruEquity
info@seethruequity.com
