[Update1] (Pervasive:PVSW) What's Wrong With This Picture?
August 11, 2012
– Comments (11) |
RELATED TICKERS: SPLK
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(July 24, 2012) Q4/FY 2012 numbers in... Q4 2012 revenues down 6.6% v Q4 2011 and slightly below 2004 Revenues, Net Income down 41.4% YoY, Revenue up 1.7% YoY.
2012 2011 2010 2009 2008 2007 2006
Revenue 49.2M 48.4M 47.2M 47.2M 42.5M 40.8M 45.6M
Net Income 1.7M 2.9M 4.1M 5.3M 3.0M 4.0M 4.8M
R&D 12.7M 11.8M 11.8M 10.6M 10.2M 9.8M 10.3M
R&D (%) 25.8% 24.4% 25.0% 22.5% 24.0% 24.0% 22.6%
2005 2004 2003 2002 2001 2000 1999
Revenue 48.4M 49.6M 39.2M 37.2M 42.2M 52.1M 58.0M
Net Income 4.0M 7.3M 6.8M 5.4M (2.5M) (28.9M) 3.6M
R&D 11.1M 10.0M 8.0M 7.1M 10.5M 13.7M 9.6M
R&D (%) 22.9% 20.2% 20.4% 19.1% 24.9% 26.3% 16.6%
Source: 1999-2011 data:wikinvest and Pervasive.
Some initial talking points regarding John Farr's PVSWs FY12 conference call [i].
1. "...With $49 million in annual revenue we achieved our best annual revenue result in the last eight years..." -John Farr, July 24, 2012
Comment: Year 1 (2005) of "eight years" John Farr is referring to, Pervasive generated $48.4M in revenue. That comes out to .23% annual increase over those eight years to finally reach $49.2M for Fiscal 2012. John Farr should have been removed for cause immediately after the conference call.
2. Why did John Farr not mention revenue growth over nine years? Because nine years ago Pervasive generated $49.6M in revenues.
3. John Farr arguably is a good COO or CFO but as CEO has and continues to fail to create shareholder value and superior competitive advantages hence said 1999 - 2012 results. Listening to the recent conference call one disturbingly and immediately knows why.
4. Said failure to create shareholder value over a decade(s) is symptomatic of an entrenched Senior management and Board of Directors who are in a disturbing bear hug. Directors have been on the Board since the 1990's [ii]. This is an outrageous Corporate Governance fail but again confirms an alleged fraud perpetrated by an out of control Board interested solely in maximizing [insider] shareholder value viz-a-viz annual option awards (over decades) not based on performance [iii], and consistent insider SELLS and no insider BUYing on the open market [iv].
5. It is obvious Pervasive should have alreaady replaced John Farr given said numbers over the last [decade]. These consistent actions and patterns speak volumes of [alleged] criminal gross negligence and fraud. I maintain some of PVSWs management are unemployable. But because of said Board and Management bear hug this hasn't changed. No one wants to lose the Insider ATM.
Let me again put said points in perspective and provide blunt-force Issues of Fact: In one year, Attunity (NASDAQ:ATTU) [v] has accomplished what has still eluded this Management and Board of Directors.
We will accordingly continue to pursue this situation with all legal recourse including, but not limited to, working with the SEC [vi] , and largest shareholders [vii]
Some updates to the June 29 post [2]...
(July 17, 2012) PVSW Pervasive Software: Big Data-ready, Big Data-willing, and Big Data-able
"...Inbar positions RushAnalyzer as a replacement for MapReduce. It sounds like a self-serving -- if not quite heretical -- proposition, and it is: Inbar concedes as much, but as Inbar sees it, MapReduce isn't the solution most folks think it is... "MapReduce is, indeed, a chain and shackle in many ways because it forces you to define your compute solutions in particular ways, including shuffling a lot of data around in intermediate systems," he explains..." - David Inbar*, Pervasive Software,
July 17, 2012
* From twitter.com profile August 11, 2012
davidinbar @davidinbar Snr Director of Big Data at Pervasive Software. Interested in all things big data, #Hadoop-friendly, and high-performance applications.
Austin, TX · http://www.PervasiveBigData.com
© 2012 Twitter
Two weeks later the following was released:
(August 1, 2012) - Hadoop-MapReduce Market Grows Exponentially
Again, in case anyone missed it, Pervasive has failed to grow revenues since 2004 and has expended $150M on R&D over a decade.
Footnotes
[i] seekingalpha. com/article/745641-pervasive-software-s-ceo-discusses-f4q-2012-results-earnings-call-transcript
[ii] pervasive. com/Company/BoardofDirectors.aspx
[iii] caps.fool. com/Blogs/nasdaqpvsw-non-insiders/690676
[iv] caps.fool. com/Blogs/nasdaqpvsw-2011-sees-no/637589
[v] Comment #3 above ref/ Attunity.
[vi] caps.fool. com/Blogs/plunk-ipo-pvsw-splk-in/730708 (comments 11, 12, 13, 15, 16, 19)
[vii] nasdaq. com/symbol/pvsw/institutional-holdings
Note: above links need to be adjusted. There is a space immediately before "com"
References:
[1] (August 2, 2012) 4 Software Stocks to Sell Now
"...This is a rough week for Pervasive Software (NASDAQ:PVSW). The company’s rating falls to D from the previous week’s C. Pervasive Software helps companies get the most out of their data investments through data management and integration software. The stock also gets an F in Earnings Momentum. Wall Street appears to agree with the stock downgrade, with share prices dropping 13.9% over the past month. The trailing PE Ratio for the stock is 64.4..."
[2] (June 29, 2012) (Pervasive:PVSW) What's Wrong With This Picture? (Including comments 1-17)
[3] (April 29, 2012) $PLUNK IPO. PVSW - SPLK: In Perspective PVSW - Q3 Ending March 31, 2012 (including comments 1-23) (This blog covers CTO dumping $1M in shares just before the end of q42012 (ending Jun 30) at prices > $7.00, B Riley downgrade the day before the fy2012 CC, and all the Elephants in the Room.
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