SLI Share Price: Headwinds for Search Evident

August 26, 2015

I read “SLI CEO Ryan Bemoans Low Share price, Says It Should Be $2-Plus.” This is a woulda, coulda, shoulda write up. Reality seems to ignore this somewhat lame mantra.

The write up says:

SLI Systems chief executive Shaun Ryan says the company’s share price is “significantly underpriced” and could be at least four times higher based on other public software-as-a-service valuations.

The write up included this bit of information:

The company today reported a loss of $7.1 million in the year ended June 30, widening from a loss of $5.7 million a year earlier. Operating revenue increased 27 percent to $28.1 million, in line with the $28 million guidance given in April, when it flagged that second-half sales would be lower than expected. Annualized recurring revenue (ARR), its preferred financial measure based on forward subscription revenue, rose 39 percent to $34.6 million.

SLI says its system

… helps you increase e-commerce revenue by connecting your online and mobile shoppers with the products they’re most likely to buy. SLI solutions include SaaS-based learning search, navigation, merchandising, mobile, recommendations and user-generated SEO.

Other publicly trade search vendors are struggling with their financial performance too. For example, Sprylogics, a Canadian vendor, sees it shares trading at $0.33. Lexmark shares are at $28 and change.

Search is a tough niche as Hewlett Packard and IBM are learning.

Stephen E Arnold, August 29, 2015


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