One Horizon Group Inc. (NASDAQ: OHGI)
One Horizon Group Inc. (OHGI), a telecommunications company announced today an agreement with YTO Express to start trial of the Aishou VoIP platform in Jiangsu Province. YTO express is one of the larger logistics company in China similar to a FedEx or DHL. Aishuo is One Horizon’s own chinese retail VoIP service platform for smartphones.
One Horizon Group Earnings and Outlook
“Revenue for the three months ended June 30, 2015 was $0.1 million compared to $1.3 million in the same period in 2014. The decrease was primarily due to the shift in the business to concentrate on the roll out of the B2C business in China through the Aishuo App. Gross margin for the second quarter of 2015 was ($0.5) million as compared to $0.8 million for the three months ended June 30, 2014. The decrease was mainly due to the reduced revenue. Operating expenses for the three months ended June 30, 2015 declined to $0.7 million from $1.2 million during the same period in 2014. Net loss and net loss per share attributable to common stockholders for the three months ended June 30, 2015 were $1.6 million and $0.05 per share, respectively, compared to a net loss of $0.5 million and a net loss per share of $0.02 during the same period in 2014. “ Market Wired
One Horizon Group CEO’s Comments
CEO comments on Agreement with YTO Express:
“One Horizon Group CEO Brian Collins noted, “We were delighted to be able to enter a fully-branded trial of our VoIP solution with one of the largest logistics companies here in China and we were confident that our cooperation with YTO Express in the coming years will be a significant revenue driver for One Horizon. Enabling the dispatchers and drivers to call the end-customer at a lower cost improves margins for YTO Express and is a real win-win solution for both of our companies.” Market Wired
CEO comments on second quarter 2015 financial results (Aug 19) :
“The success of our Aishuo App has continued to build momentum in the second quarter,” stated Founder and CEO Brian Collins. “With Aishuo now available across a wide range of mobile storefronts, support from all major Chinese mobile payment platforms, and exclusive agreements beginning to ramp up, we are confident that Aishuo will drive multiple revenue streams through the remainder of 2015 and beyond. In conjunction, successful and expanding partnerships with Smartfren and other Tier 1 carriers for our validated technology are also supporting international adoption and revenue growth.” Market Wired
Technical Analysis
OHGI gapped up in price today to $1.60 up from yesterday’s close of $1.41 which is a 13% increase in price based on favorable news. Taking a look at the daily chart we can see the last time it traded above this level was last week on Aug 13 when the stock hit a high of $2.40. The last time the stock closed above $2 was on Aug 4 when it close at $2.25. Taking a further look down the daily chart we can see the stock reached a high of $5.52 back on June 11. Those highs can be attributed to the company first announcing it supports all major chinese mobile platforms for its chinese retail voip service named Aishou. Since the highs on June 11 the stock has been in freefall hitting lows of $1.29 on Aug 12. As we can see the stock has been extremely volatile in the past couple of months. The stock has a low float of 15.59 million and has shown in the past it can run up on positive news making it a candidate for the gap and go strategy. The stock hit pre-market highs of $2.05 but gave back $0.45 and opened at $1.60. This concerns me a bit as it may be overextended right now. For trading purposes I would use the $1.80 price as my entry point looking for the run to $2.00 and beyond, the $2.00 level would be a good add on price. My stop loss would be the $1.60 gap up price fearing if it falls below that price we may fill in the gap up.
Company Profile
One Horizon Group, Inc., through its subsidiaries, develops and licenses software solutions to telecommunications operators in Europe, Asia, the Russian Federation, and the United States. The company develops Horizon platform, a bandwidth-efficient voice over Internet protocol platform for smart phones and tablets; and provides optimized data applications, including multi-media messaging and mobile advertising. It also licenses its software solutions to telecommunications network operators and service providers in the mobile, fixed line, cable TV, and satellite communications markets; and provides software maintenance services. The company is based in Limerick, Ireland. Yahoo Finance
