Carl Data Solutions (CSE:CRL) Revenue Forecast to Grow 184% Y/Y: Ubika Research

Equity Research Software | Canadian Small Cap September 4, 2018
Alp Erdogan, MBA | Analyst | Ubika Research Alp@UbikaResearch.com | 1 (647) 479-5690

”Carl

Market Data (CSE:CRL)

Price (Aug 30, 2018)$0.12

52 Week Range$0.06 – $0.48

Market Cap (M) $9.1

Current Shares Outstanding (basic, M) 75.9

Current Shares Outstanding (fully diluted, M)109.8

Free Float83%

Average Daily Volume (3 months)93K

Last Reported Debt (M)*$1.2

Last Reported Cash (M)*$0.8

Total Assets (M)*$2.9

Headquarters Vancouver, BC., Canada

Website http://www.carlsolutions.com

Top Shareholders

Brad Scharfe7.6%

BDirect Online Comm 2.9%

Greg Johnston2.4%

Jason Scharfe1.9%

Kerr Wood Leidal Associates, L1.3%

Management

Greg JohnstonPresident, CEO and Director

Alastair BrownlowCFO

Piotr StepinskiCTO

Mike McDonald VP of Engineering

Kevin MarshVP of Business Development

*As of Mar. 31, 2018 All figures in CAD unless otherwise stated. Source: Company Reports, Thomson Reuters

Price Performance

Figure 1: Company's Solutions Overview

Source: Company Reports

Carl Data Solutions Inc. (CSE:CRL)

Company Description

Carl Data Solutions Inc. is a Canada-based company focusing on the next generation of data collection, storage, monitoring and analytic solutions for data-centric Industrial IoT enterprises. The Company develops cloud-based software analytics and dashboard solutions to provide Big Data-as-a-Service (BDaaS) solutions for industry and governments. Carl Data’s applications can collect any type of data from any sensor or source to produce detailed reports, predictive analytics, and real-time insights into infrastructure status. Carl Data’s innovative data platform is currently focused on Water/Wastewater Infrastructure, Mining and Solid Waste Management.

Investment Highlights

  • Astra Smart Deal & Data Center Highlights. On June 8, 2018, Carl Data completed the acquisition of Astra Smart Systems Inc. (“Astra”), a technology company that produces advanced environmental sensors and devices for IIoT applications, develops complimentary data-centric software and runs a data center currently filled to half capacity with 700 servers in Trail, B.C. Astra also has research capabilities in machineto-machine (“M2M”), smart contract and blockchain products to build distributed data storage solutions. Of significance, the data center is fully Canadian Standards Association (“CSA”) certified, offering a 1.5MW co-location platform, with services including perimetric security, monitoring cameras and relative humidity sensors. The Company already has one customer and is ramping up to have a 4MW facility ready in the near future. Accordingly, management is actively seeking Big Data, Artificial Intelligence (AI) or Crypto-mining clients.
  • We continue to forecast CRL’s annual revenue run rate to approach $3M – $4M for FY2019, implying an impressive 184% y/y growth at the midpoint of our topline range. The location of Astra’s data center & manufacturing facility, and integration framework to combine existing product lines make the Company an attractive asset for Carl Data. Management forecasts Astra revenues to grow beyond the $1.4M annual run rate, driven by operational synergies from integrated end-to-end (“E2E) solutions. Currently, CRL’s annual revenue run rate is $1.2M. Carl Data has several key catalysts that should help the revenues to meaningfully pick up in FY2019. Specifically, these drivers include: roll-out of new initiatives in the mining vertical, more clients projected to sign up for the Analytics suite and the release of smart data loggers. Conclusively, we opine that the next 12 months is going to be strong from a revenue generation standpoint, and CRL will achieve the aforementioned $3M – $4M range.
  • Carl Data is emerging as a leader in Big Data analytics, with ability to leverage technology over several verticals. Since the acquisition of FlowWorks in 2015, the Company has built a robust BDaaS technology stack servicing a high-quality and sticky client list in the following sectors: Water & Wastewater Infrastructure, Mining and Solid Waste Management. The Astra deal gives Carl Data a strategic lever to provide fully integrated E2E solutions and further bridge the IIoT software and hardware markets to capitalize on ‘Smart City’ international opportunities. Consequently, we believe that at current levels, CRL shares exhibit an attractive risk/reward profile.

To find out more about Carl Data Solutions Inc. (CSE:CRL), please visit the company’s Investor Hub.

Ubika Research/SmallCapPower has received compensation from Carl Data Solutions Inc. (CSE:CRL) to provide analyst research coverage. For full disclosure please visit here >>.

To read our full disclosure, please click on the button below:

The Content contained on this page (including any facts, views, opinions, recommendations, description of, or references to, products or securities) made available by SmallCapPower/Ubika Research is for information purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated there with and is not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by SmallCapPower/Ubika Research. The Reader should apply his/her own judgment in making any use of any Content, including, without limitation, the use of any information contained therein as the basis for any conclusions. The Reader bears responsibility for his/her own investment research and decisions. Before making any investment decision, it is strongly recommended that you seek outside advice from a qualified investment advisor. SmallCapPower/Ubika Research does not provide or guarantee any financial, legal, tax, or accounting advice or advice regarding the suitability, profitability, or potential value of any particular investment, security, or information source. Ubika and/or its affiliates and/or their respective officers, directors or employees may from time to time acquire, hold or sell securities and/or commodities and/or commodity futures contracts in certain underlying companies mentioned in this site and which may also be clients of Ubika’s affiliates. In such instances, Ubika and/or its affiliates and/or their respective officers, directors or employees will use all reasonable efforts to avoid engaging in activities that would lead to conflicts of interest and Ubika and/or its affiliates will use all reasonable efforts to comply with conflicts of interest disclosures and regulations to minimize the conflict.