4 Small Caps with a Giant Jump in Net Income

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Companies on our list have also seen big increases in revenue, margins

SmallCapPower | October 11, 2016: When talking about company growth people often lose perspective and look just at the bottom line. If the bottom line is increasing, people have the tendency to believe the company is healthy and growing. However, there are two different ways to increase the bottom line, either through increasing revenue or increasing your operational margins. If a company is increasing its margins by decreasing costs, it can only provide so much growth in net income. But by increasing revenues while becoming more efficient at providing your products or services, it will lead to huge increases year over year in net income and set the company up for continued growth. The companies on our list today exhibit those good qualities and have all experienced net income increases of more than 100% over the last 12 months.

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QHR Corp. (CVE:QHR) – $3.10
IT Services & Consulting

QHR Corporation is a healthcare technology company. Its principal business consists of electronic medical records applications and hosting for physicians’ medical offices, and revenue cycle management software solutions and transaction processing services to physicians, hospitals, health plans, insurance brokers and state governments to exchange information for health plan enrolment, eligibility and claims. The Company’s product portfolio includes AccuroEMR and Medeo.

  • Market Cap: $161.96
  • Rev % change LTM: 17.18%
  • Operating Margin % change LTM: 124.7%
  • Net Income % change LTM: 109.48%

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NeuLion Inc. (TSE:NLN) – $0.98
Software

NeuLion, Inc. is a provider of enterprise digital video solutions. The Company’s solution, the NeuLion Digital Platform, is a Cloud-based, fully integrated solution that allows the delivery and monetization of digital video content. The NeuLion Digital Platform offers content owners and rightsholders a suite of digital technologies, together with services for back-end content preparation, management, delivery and monetization, in an end-to-end solution. The Company’s solution suite also includes its DivX video solution that allows consumer electronics (CE) manufacturers to provide a video experience and premium screen resolution, till Ultra High-Definition (HD)/4K, across virtually all content formats, for a range of connected devices.

  • Market Cap: $282.90
  • Rev % change LTM: 50.08%
  • Operating Margin % change LTM: 38.2%
  • Net Income % change LTM: 928.95%

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Tecsys Inc. (TSE:TCS) – $9.60
Software

TECSYS Inc. is engaged in the development, marketing and sale of enterprise-wide supply chain management software for distribution, warehousing, transportation logistics and point-of-use. The Company also provides related consulting, education and support services. Its Supply Chain Platform with Visual Content is a technology for optimizing warehouse management operations. It offers various services, such as project management, customer support, training and technical services.

  • Market Cap: $118.23
  • Rev % change LTM: 15.93%
  • Operating Margin % change LTM: 107.5%
  • Net Income % change LTM: 320.55%

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Intertain Group Ltd. (TSE:IT) – $11.21
Online Services

The Intertain Group Limited, formerly Aumento Capital II Corporation, is an online gaming company that provides entertainment to customers. The Company offers bingo and casino games to its customers through Costa Bingo, Vera&John, Vera&Juan, Vera&John Social, Jackpotjoy, Starspins, Botemania, InterCasino, VIP Casino, and other brands. Its segments include Jackpotjoy, Vera&John, Mandalay and InterCasino. The Jackpotjoy segment consists of online bingo and online casino brands, including Jackpotjoy, Botemania and Starspins.

  • Market Cap: $791.47
  • Rev % change LTM: 218.45%
  • Operating Margin % change LTM: 102.4%
  • Net Income % change LTM: 251.96%

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