TOP IDEAS: Intrinsyc
Technologies sees revenue growth from a wave of orders for its Artificial
Intelligence (AI) computing modules that power next-generation, high-tech
price accumulation target of $1.20 for Intrinsyc Technologies Corp. was reached
on March 21, 2016. For the record, we do not revise share price targets for our
Investorfile Top Ideas – Small Cap Value Stocks. We have positioned our blog to
be one of the first providers of a pragmatic perspective of a small cap company
stock's potential worth, where there may be uncovered value that has been
largely overlooked by the investment community.
The development of
Artificial Intelligence capabilities is driving the commercialization of new
high-tech products. It is also driving Intrinsyc Technologies’ revenue growth.
Intrinsyc Technologies Corp
(TSX: ITC – C$1.28) provides solutions for high-tech original equipment
manufacturers (OEMs) that span a product's development life cycle from concept
to production with the ability to offer differentiated products with faster
time to market. As such, Intrinsyc designs proprietary computer modules (mostly
with Qualcomm processors) that become embedded systems that drive the dedicated
functions for high-tech products in new markets including the Internet
of Things, smart phones and tablets, drones and robotics, wearable security
cameras, in-flight entertainment, auto console computers, medical devices and
Intrinsyc Technologies has a revenue model that derives sales from
proprietary computer modules and development kits, as well as high-margin
engineering services related to those modules and kits for an OEM product
development program. As its OEM customers’ new products gain market acceptance,
Intrinsyc shares in the commercial success by earning recurring revenues from
computer modules sales and/or design royalties in correlation with the
Artificial Intelligence (AI) capabilities
are fast becoming the backbone for new high-tech products in development. AI is the simulation of human intelligence processes by
machines, particularly computer systems. These processes include learning,
reasoning and self-correction. There is growing evidence that the emergence of
AI may be a boon for Intrinsyc’s business, which thrives on new
high-tech product innovation.
Over the past several
months, the Company announced it has won a multitude of orders for its AI
computing modules. From recent news releases:
Technologies signed a supply agreement and received receipt of an order that is
valued at US$1.2 million. This initial stocking order is for the purchase of
the Company's Open-Q 835 edge artificial intelligence computing modules to be
used in a next-generation video collaboration product. Order delivery is
expected to occur in the fourth quarter of 2019.
Technologies received an order that is valued at US $1.12-million as a follow-on
order is for the purchase of the company's Open-Q 835 edge artificial
intelligence computing modules to be used in a next-generation video
collaboration product. Order delivery is expected to occur in the first quarter
Technologies received an order from a new client that is valued at US$882,000. The
order is for the purchase of the company's Open-Q 835 edge AI computing modules
that will bring artificial intelligence capabilities to an intelligent medical
device. Delivery will begin in the fourth quarter of fiscal year 2019 and
extend through fiscal year ending Dec. 31, 2020.
Last year Intrinsyc Technologies had impressive growth. Year-over-year
in 2018, the Company reported a significant jump in revenues, growing 24%,
setting a new annual record at US$25.7 million. Those results were fuelled by 33% revenue growth from the sales of
the Company’s embedded computing modules.
We think the AI revolution is going be a windfall for Intrinsyc
Technologies future revenue growth. This will come from the repeated sales of its
AI computing modules that power the wave of
next-generation products currently in development by the Company’s OEM
That said we
have a very positive view of Intrinsyc Technologies’ financial prospects to the end of 2019 and continuing into 2020. With this trend there is potential for ample stock
price appreciation by purchasing the stock at its current trading levels.
Investorfile first recommended the purchase of Intrinsyc’s stock at a price C$0.75 several years ago and is on our list of Top Ideas.
Technologies has approximately 20 million shares outstanding.
Company Website: www.intrinsyc.com
share ownership disclosure: ITC - Yes
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
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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.
author of this article has acquired and may trade shares of Intrinsyc Technologies
Corporation through open market
transactions and for investment purposes only.