- “Furthermore, we are beginning to see signs of economic recovery, and specifically, certain signals for expanded growth in mid-2010 as they relate to the Mediasite product and service offering. Correspondingly, our recent prospecting has resulted in additions to our sales pipeline that, if consummated, would dwarf most of the previous sales made by the company to date. These opportunities have been harvested both domestically and internationally and in different vertical segments of our customer base, most of it occurring in the last few months. Based on the expected timing of these new opportunities, mid-2010 may mark a significant turning point for the company, which could substantially expand operating performance, especially given the cost reductions and operating leverage now in place."
- Create an Online Learning Destination from Your Conference: Scaling the Autodesk University Experience with Mediasite
While the company uses a third party to create a customer interface for the "University", the engine is Mediasite. As video becomes more pervasive at Autodesk and other companies, we think Mediasite will be there (even acknowledging risks such as technological change and competition). This brings us back to the advice from Peter Lynch and Philip Carret: look around and seek favorable trends.
Of course, the proof is in the pudding: results need to show accelerating adoption and penetration into the mainstream marketplace. Positive earnings and an outlook for continued positive earnings would reset Market expectations for Sonic Foundry and possibly bring new investor interest (note: liquidity and small size remain institutional investment constraints).
Only one sell-side analyst appears to cover the company (we're uncertain which firm) and, per Yahoo! Finance estimates, he/she expects losses of approximately one dollar this year and next. Per our 3/3/10 Sonic Foundry post, we think the signs should be reversed and see potential for one dollar of cash earnings for the year beginning this summer.
Disclosure: long SOFO.
© 2009 Jeffrey Walkenhorst
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