The small cap technology sector is littered with risky startups, many of which end up going nowhere. The companies on our list today, though, are up and coming tech names that are proven revenue generators ($70 million plus annually) and have also turned that revenue into potential returns for investors.
Points International Ltd. (TSX: PTS) – $15.75
Internet Services
Points International Ltd. (Points) is a provider of e-commerce solutions for the loyalty rewards industry. The Company’s products help the loyalty programs increase loyalty member engagement and leverage their online presence. The Company provides a range of e-commerce and technology services to loyalty program operators using a common infrastructure. These services include a range of white label or private branded e-commerce services (Loyalty Currency Services) that enable the sale of loyalty currencies (such as frequent flyer miles, hotel points and credit card points), both retail and wholesale, and enhance loyalty program consumer offerings and their back end operations. It offers a consumer focused reward management website referred to by the Corporation as Points.com, and a hotel booking engine and loyalty currency aggregator built for frequent travelers, the PointsHound.com website.
- Market Cap: $243,901,676
- Revenues (LTM): $304,415,523
- Net Income (LTM): $6,921,284
- Price Change (Year to Date): +3.7%
Sandvine Corp. (TSX: SVC) – $3.68
Communications & Networking
Sandvine Corporation (Sandvine) is a Canada-based company, engaged in developing and marketing network policy control solutions for high-speed, or broadband, Internet service providers. The Company’s network policy control solutions comprise hardware and software modules to introduce unified network policy control into any fixed mobile network. Its products include network analytics, which helps improve business performance by optimizing capital investments, avoiding mistakes, and maximizing revenue.
- Market Cap: $549,006,226
- Revenues (LTM): $142,194,510
- Net Income (LTM): $29,988,121
- Price Change (Year to Date): +12.2%
SMART Technologies Inc. (TSX: SMA) – $1.15
Computer Hardware
SMART Technologies Inc. (SMART) is a provider of technology solutions that include interactive large format displays, collaboration software and services that enable highly interactive, engaging and productive teaching, learning and work experiences in schools and workplaces around the world. The Company sells its solutions to schools and enterprises globally. The Company also offers a number of interactive display products, including SMART Board interactive whiteboards and flat panels, LightRaise interactive projectors, the SMART Table interactive learning center and the SMART Podium. The Company sells its interactive displays through its reseller network to its customers in both education and enterprise.
- Market Cap: $142,963,368
- Revenues (LTM): $564,786,397
- Net Income (LTM): $25,332,936
- Price Change (Year to Date): -15.8%
Mediagrif Interactive Technologies Inc. (TSX: MDF) – $17.23
Internet Services
Mediagrif Interactive Technologies Inc. is a Canada-based e-commerce solutions company. It provides Information Technology (IT) services and owns several mobile platforms, including Jobboom, LesPAC, Réseau Contact, MERX, InterTrade, Carrus, BidNet and SourceSuite. The Company operates in several sectors, including electronic components, computer equipment and medical equipment, automotive aftermarket, wine and spirits, diamonds and jewelry, classified ads, supply chain and Government opportunities.
- Market Cap: $264,373,758
- Revenues (LTM): $70,247,000
- Net Income (LTM): $15,633,000
- Price Change (Year to Date): -5.7%
Tucows Inc. (TSX: TC) – $35.85
Internet Services
Tucows Inc. is an Internet services provider focused on serving the needs of a network of resellers by providing services, interfaces, customer service, reseller-oriented technology, and design and development processes. The Company also provides second tier support to its resellers by e-mail and phone in the event resellers experience issues or problems with its services. In addition, the Company’s Network Operating Center provides support to its resellers by monitoring services and network infrastructure. The Company operates two segments: Domain Services and Network Access Services. The Company’s primary distribution channel is a network of more than 13,000 resellers in over 100 countries. Tucows focuses its service offerings under four brands: OpenSRS, YummyNames, Hover and Ting.
- Market Cap: $388,745,310
- Revenues (LTM): $177,903,520
- Net Income (LTM): $10,204,900
- Price Change (Year to Date): +57.5%
