Historically there has been a lot of investor fatigue as result of owning shares in Intrinsyc Technologies (TSX: ITC - $0.75). But for the Investorfile blog this stock is still a relatively a new addition to the list of our Top Ideas – Small Cap Value Stocks. (See: Intrinsyc Technologies: A high-tech turnaround play, for small cap value investors).

We admit to being a conservative small cap investor but this blog is very bullish on the future prospects of Intrinsyc Technologies. In fact we have not been shy about this. We predicted that this Company could have a breakout year in 2015 (See: Investorfile small cap predictions fare well in 2014; Outlook for 2015 – Prediction #2 Intrinsyc Technologies - Our Top Ideas stock, which could have a breakout year in 2015). That said, recent announcements indicate that the Company is still on track to begin growing its revenues significantly over the next four quarters. 

Intrinsyc Technologies provides solutions that span the development life cycle from concept to production to help high–tech device makers (original equipment manufacturers – OEMs) with the ability to offer compelling differentiated products with faster time to market. As a Qualcomm licensee and a leader in Qualcomm® Snapdragon™ product development programs for the Snapdragon family of mobile processors, Intrinsyc designs proprietary computer modules with Qualcomm processors which become embedded systems that drive the dedicated functions for new high-tech products.  

The revenue model for Intrinsyc includes the sales of its proprietary computer modules and development kits, as well as engineering services related to those modules and kits for the creation of new products. Revenues really begin to ramp up for the Company from computer modules sales and/or design royalties tied to the OEM’s (Intrinsyc customers) new product sales at the commercialization stage. 

Intrinsyc’s revenues are beginning to rise. For Q2 in 2015, the Company reported revenues jumped 27% from Q1 to US $2.9 million (Intrinsyc reports financial results in US dollars). The Company earned US $266,359 or US $0.01 per share for the quarter. In the recent investor call, Management reported that the Company was providing new product development services to about 30 different companies, all with emerging high-tech products poised to be commercialized. Intrinsyc clients operate in a wide variety of vertical markets, including: Automotive, Communications Infrastructure, Consumer Electronics, Surveillance/Security, Industrial Control, Energy/Power, Medical, Retail Solutions and Military/Aerospace. 

A recent press release and special filing (a few days following the Q2 report) was even more telling of the Company’s future growth prospects. Intrinsyc Technologies reported it had received its first purchase orders from two clients whose products are being commercialized. The two customers are expected to be significant contributors to the Company’s revenues in 2016 with the aggregate annual unit volume of Intrinsyc's Open-Q computer modules sales anticipated to exceed 50,000 units. We calculate that as approximately US $7-8 million in revenues (derived from the two customers) for Intrinsyc annually. We note that the Company also filed "material change" report to alert the investment community of the potential ramp up of its revenues as result of this news. 

We view this announcement as a strong signal of revenue growth potential for Intrinsyc Technologies. That said the overall revenue growth is not just expected to come from the above noted clients, but from the numerous other Intrinsyc customers whose high-tech products are in later stages of development and soon to be commercialized. 

With the recent the developments, we reiterate that small cap investors should accumulate the shares of Intrinsyc Technologies up to a price of CDN $1.20 in advance of the Company realizing its revenue growth potential. 

The Company has approximately 20.7 million shares outstanding.

Intrinsyc Technologies website: www.intrinsyc.com

Author’s share ownership disclosure: ITC - Yes

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This article is for informational purposes only. This article is based on the author's independent analysis and judgment and does not guarantee the information's accuracy or completeness. The information contained in this article is subject to change without notice, and the author assumes no responsibility to update the information contained in this article. The information contained within this article should not be construed as offering of investment advice. Those seeking direct investment advice, should consult a qualified, registered, investment professional. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. 

Investorfile.com is not engaged in an investor relations agreement with Intrinsyc Technologies Corporation nor has it received any compensation from Intrinsyc Technologies Corporation for the preparation or distribution of this article.

The author of this article has acquired and may trade shares of Intrinsyc Technologies Corporation through open market transactions and for investment purposes only.