ENTU- (recommended
to subscribers
on 8/03/04)
BOUGHT
at $2.68 SOLD
at $4.93
On
July 26th 2004 Entrust Incorporated, a provider of identity and access
management solutions, reported fiscal 2nd quarter 2004 revenue of $19.5
million which compares to $22.4 million in the year earlier period. Net
loss in the quarter was $2.6 million or 4 cents per share which was an
improvement from the 2nd quarter of 2003. Entrust said in the earnings
release and during the conference call that they are still focused on
meeting their goal of full year break-even.
On August 2nd 2004
Entrust announced that it had extended it's stock repurchase plan to
September 2005 and authorized an additional 10 million shares for
repurchase. So far Entrust has repurchased about half of the 7 million
that had been previously authorized. This announcement now authorizes
Entrust to buyback up to 13.5 million shares which is 21% of shares
outstanding or 25% of the float.
During the 2nd
quarter of 2004 Entrust's largest customer was the U.S. government.
Direct sales to the U.S. government were 9% of total sales. The 2nd
largest customer was the Canadian government which accounted for 6% of
total sales. If sales through resellers to government end users are
included then the U.S. government makes up 15% of sales and the
Canadian government 9%. During fiscal 2003 35% of total revenue was
derived from outside of North America.
Entrust has $103
million in cash and securities or $1.63 per share. Book value is 92
cents per share and the company carries no debt. The stock currently
has a price-to-sales ratio of 2.
Above is a 3
year chart of ENTU. The stock has bottomed on a closing basis near the
current price several times over this period. The stock had an all-time
closing low of $2.17 in July 2002. Besides that low, several other lows
have been made on a closing basis between $2.26 and $2.66 including
October 2001, October 2002, and February & April of 2003.
6/10/05
- SOLD
AT $4.93 FOR A GAIN OF 84%. DURING THE SAME PERIOD THE NASDAQ WAS
UP 12%.
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