By Hassan Malik
An essential unit of measurement for many investors is year-over-year growth. This indicates whether a company’s financial performance is improving or worsening over time. Today, we have shortlisted 3 Canadian small-cap tech stocks that are worth looking at in terms of their year-over-year growth.
Sierra Wireless Inc. (TSX: SW): Sierra is one of the fastest growing Canadian tech companies, with its share price surging from around $20 last year to about $38 today. The company is best known for being a specialist in The Internet of Things (IoT), which includes the hardware and software that allows an array of devices, sensors, machines and computers to communicate with each other. Many view the IoT as the next great tech boom, especially given that Sierra Wireless has the top global market share of 34% in the machine-to-machine market. In 2014, Sierra Wireless’ revenue rose to a new record of US$548 million (an increase of 24.1% compared to 2013), with gross margins of US$178 million and a net loss of US$16.8 million. For Q4 of 2014, the company reported a year-over-year revenue growth of 26%. This figure is up from the Q4 of both 2013 and 2012 when the company reported year-over-year growth of 11.2% and 19.2, respectively.
Mitel Networks Corp. (TSX: MNW): Mitel has been labeled “the global market leader in cloud communications” by Synergy Research Group, with a market share of 20%. Synergy Research also recognizes the company as being “the fastest growing provider of cloud communications.” This is based on Mitel’s solid year-over-year Q3 performance, which saw subscriber seats more than double. During its third quarter of 2013, the company reported that it installed 107,000 new cloud seats, including over 49,000 recurring cloud seats. Mitel’s recurring cloud seats increased to 245,000, up 111% and its total installed cloud base increased to over 860,000 seats, up 73% year-over-year. Mitel is scheduled to report its Q4 financials on February 26, 2015. Investors should be watching keenly to see the first yearly report since the acquisition of Aastra has been completed. Analysts are already optimistic that Mitel will achieve its promise of raising revenues to $1 billion. As well, analysts are predicting that the stock price is in a good position to double over the coming years.
BSM Technologies (TSXV: GPS): The company is a leading provider of real-time GPS fleet and asset management solutions. The stock is a past pick of small-cap fund manager Steven Palmer of AlphaNorth Asset Management. In his interview with SmallCapPower, Mr. Palmer called BSM Technologies a “low risk assessment” since the company “is easy to value as it has an earnings history.” The company recently announced its results for Q1 of fiscal 2015. Total revenue for the company was $7.8 million as compared to $7.9 million in Q1 of 2014. However, the company reported that it was able to successfully grow its revenue per client in the United States by 118% as compared to Q1 2014, largely due to its recent U.S.-based Lat-Lon and JMM acquisitions. The company’s subscriber base has total net additions of 1,850, ending the quarter with a total of 79,350 subscribers.
Disclaimer: This article was posted with the permission of a third-party contributor and the opinions contained therein do not necessarily reflect those of SmallCapPower. SmallCapPower does not endorse any investment advice provided by these third-party contributors.
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