Fatpipe Inc/UT (NASDAQ:FATN) Posts Quarterly Earnings Results

Fatpipe Inc/UT (NASDAQ:FATN) posted its quarterly earnings data on Wednesday. The company reported $0.11 earnings per share (EPS) for the quarter, reports. Fatpipe Inc/UT had a net margin of 31.64% and a return on equity of 31.45%. The business had revenue of $4.83 million during the quarter.

Here are the key takeaways from Fatpipe Inc/UT’s conference call:

• FatPipe reported Q2 revenue of $4.8 million, up 22% year over year, with net income of $1.2 million, adjusted EBITDA up 60%, and a 90% gross margin. For the first half, revenue grew 25% and net income rose 250% year over year.
• Recurring billings increased 55% year over year, with management attributing the sequential rise to new business, larger deployments, and renewals. The $7 million education contract is contributing about $300,000 per quarter at its current pace, with a higher full run rate expected.
• The company introduced Constellation, a network-monitoring product available on-premises or in the cloud, either independently or alongside FatPipe’s other offerings. Management said orders have begun and described it as an easier sale than cybersecurity products that may require customers to replace existing systems.
• Management said FatPipe broke even in October and aims to sustain positive cash flow, while noting that hardware purchases and sales-force expansion will require resources. It also refinanced an SBA loan at a lower rate and secured a $1.5 million credit line.
• Management said SATBoost has not gained traction as quickly as hoped, though it recently saw more interest from customers adding satellite service to terrestrial networks. The company plans to expand its sales force to 36 by fiscal year-end and 48 the following year; new salespeople typically take three to six months to reach break-even, and longer for larger deals.

Fatpipe Inc/UT Price Performance

NASDAQ FATN traded down $0.19 on Friday, reaching $4.38. The company’s stock had a trading volume of 43,251 shares, compared to its average volume of 768,894. Fatpipe Inc/UT has a twelve month low of $1.31 and a twelve month high of $8.61. The company has a debt-to-equity ratio of 0.16, a quick ratio of 3.79 and a current ratio of 3.98. The stock has a market cap of $61.88 million, a PE ratio of 9.12 and a beta of 2.92. The firm’s 50 day moving average is $5.41 and its two-hundred day moving average is $4.29.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the company. Wall Street Zen upgraded Fatpipe Inc/UT from a “hold” rating to a “buy” rating in a research report on Sunday, August 9th. Roth Capital started coverage on Fatpipe Inc/UT in a research note on Thursday, September 10th. They set a “buy” rating and a $8.00 price target for the company. Finally, Weiss Ratings upgraded Fatpipe Inc/UT from a “sell (d)” rating to a “sell (d+)” rating in a research report on Monday. Three analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, Fatpipe Inc/UT presently has a consensus rating of “Moderate Buy” and a consensus price target of $9.33.

Hedge Funds Weigh In On Fatpipe Inc/UT

Several hedge funds have recently made changes to their positions in FATN. Allworth Financial LP bought a new stake in shares of Fatpipe Inc/UT in the 2nd quarter worth approximately $162,000. Grandeur Peak Global Advisors LLC acquired a new stake in Fatpipe Inc/UT during the second quarter valued at approximately $277,000. Finally, BlackRock Inc. acquired a new stake in Fatpipe Inc/UT during the second quarter valued at approximately $170,000.

Fatpipe Inc/UT Company Profile

FatPipe Inc is a Utah-based networking technology company that develops software-defined wide area networking (SD-WAN) and WAN optimization solutions. Its products are designed to help organizations improve network performance, reliability, security and connectivity across offices, data centers, cloud environments and remote locations.

The company’s offerings use multiple network connections to provide traffic management, failover and load balancing. FatPipe’s portfolio has included SD-WAN, WAN virtualization, VPN, secure connectivity and network optimization solutions intended for enterprises, service providers, government organizations and other institutions.

FatPipe serves customers through business and channel relationships in the United States and international markets.