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SmallCapPower
Box Score
Daily Stocks on the rise
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The Ubika Research Tech Stock Watchlist
| Route1 Inc (V.ROI) |
| Company Name: |
Route1 Inc. |
| HQ Location: |
Toronto, Ontario |
| Company Website: |
www.route1.com |
| Shares Outstanding |
388.4 Million |
| Market Cap: |
$48.5 Million |
| 52 Week Range |
$0.00 - $0.15 |
| Closing Price (March 30, 2010) |
$0.125 |
| Average Daily Volume |
1.06M |
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Share Highlight / 1-Year Stock Chart
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Business Overview
Route1 delivers award-winning security and identity management solutions to customers worldwide. These solutions provide universal and secure access to all digital resources and sensitive data. At the heart of Route1's solutions is MobiNET, a communications and service delivery platform focused on identity management and entitlement-based access to resources. Route1's patent-pending solutions are based on FIPS-140-2 cryptographic modules, and simplify the process of meeting increasingly stringent regulatory requirements around privacy and security. Headquartered in Toronto, Route1 is listed on the TSX Venture Exchange. + More info
What is interesting?
- Route1 Inc is in the business of providing digital security to organizations and governments which enable their employees to access critical information from proprietary systems and networks.
- Company has acquired blue chip clients and a name for itself in this fast growing segment of the IT security market.
- Organizations for both legal and strategic reasons have to be able to ensure that only authorized employees/clients/stakeholders get access to the company’s network and data. This is today not just a business imperative but a legal and regulatory requirement in many cases. This challenge is increasing as organizations are interconnected and different stakeholders access company systems remotely.
- Given the risk for organizations from legal and reputation perspective and some high profile incidents recently, investing in “technology to have secure access” is an area where companies are likely to keep investing.
- Route1 has software which enables data security and identity management. Route1 technology enables companies to know who is accessing their network and from where and ensure access is open, yet controlled and done in a secure fashion.
- Company has had some major customer wins including US Homeland Security Department and US Defence Department.
- Company has announced that it is very close to being awarded a US patent for its technology.
- Route1 has a partnership agreement with a US telecom provider who has committed to generate $5.5Million of subscription based service revenue for Route1 by selling to US government agencies.
- Route1 has been approved and has a standing procurement agreement with Government of Canada to provide up to $20 Million worth of products and services ( basically government departments can purchase Route1 products without tender).
- Company is gaining traction as its revenue jumped 345% (year over year) in 2009 and achieved revenue of $5.2Million in 2009.
- Company has a subscription based revenue model for its MobiNET® service.
- The company says it needs to achieve 22,500 subscribers to achieve cashflow breakeven and it already has 17,000 subscribers. The company is targeting to achieve 100,000 subscribers in 2010 (as stated by the company). If the company achieve its target it would be profitable in the near term.
Risks
Company is still not profitable and has some debt which it need to repay in 2010. Digital security business is very competitive and the company has to continue to invest in technology to stay ahead of the competition. There was some management changes in the past and it seems company has moved on from those turbulence. Route1 Inc. News
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