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Atlas Technology International Inc (OTCMKTS:ATLT) Is Today's Tech Focus

Atlas Technology International Inc (OTCMKTS:ATLT) Is Today's Tech Focus
Written by
Jarrod Wesson
Published on
May 12, 2017
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Atlas Technology International Inc (OTCMKTS:ATLT), the designer and distributor of touchscreen devices, will release its Q1 2017 financial figures on May 15, 2017. Traders are expecting a lot from the company, as it noted very recently that it will be releasing better than expected earnings. In our opinion, the earnings will be better than expected, but we will need to study the financial figures from several angles to have a fair opinion about it. In this article, we will provide an overview of the company, so that traders are ready to receive the next Q1 2017 figures. First of all, have a look at the recent share price movements:SourceBusinessAtlas Technology International, Inc. was initially founded on July 7, 2014 for the purpose of merging with an older company Sweets & Treats, Inc., which was incorporated on April 13, 2011. ATLT issued 10 million shares to pay for Sweets & Treats. There were some other corporate transactions including a spin-off and a stock purchase agreement that investors can check in this document, but we don't consider it relevant for the assessment of the company's value.What is the activity of the company? The company designs and develops touchscreen devices useful for wide range of industries. The company has designed interfaces for different formats, such as GPS systems, Point of Sale machines, Hospitality, Medical Appliances. What is the strategy? ATLT targets the Internet of Things (IOT) market. It is expected that companies will expend nearly $6 Trillion in IoT solution, which means that devices will be connected three times more than now by 2020. The company believes that its know-how and interfaces will be very useful for building new devices.Recent developmentsWe were quite surprised to see that the company does not communicate a lot. It may be seen as a good fact by some savvy traders. The company is more focused on designing new products to increase the revenue line than on putting out news. In fact, in 2017, the company released only one press release about the relocation of its headquarters on February 13, 2017. ATLT seems quite interested on focusing on the demand from the US markets. This is what the CEO said:

“This strategic move is designed to leverage the increasing demand and market acceptance of our technology from both the U.S. and Pacific Rim markets. Our decision to relocate to the U.S. will also allow us to take advantage of world-class engineering talent from Silicon Valley as we develop our next generation technologies while also providing us with a strategic hub to service our existing and new blue-chip client base out of the U.S.” Source

All the other press releases communicated information about the next Q1 financial results. That is the reason that we recommended investors to check the numbers on May 15, 2017. These are some of the comments that we have seen. The CEO, Matthew Tsai, said:

“Demand for our existing and new touch screen product lines continue to increase faster than anticipated, which should enable us to book more revenues in just one quarter than the entire first half of fiscal 2017.” Source"Revenues in the third quarter of fiscal 2017 are expected to be in the range of $1.0 to $1.2 million, an increase of between 30%-56% on a sequential basis compared to revenues of $769,821 in the Company’s second fiscal quarter ended December 31, 2016." Source

In addition, we have highlighted the following words stated by the CEO, in which the strategy is explained:

“We believe the recent move of our corporate headquarters to Los Angeles and increase in personnel, particularly in sales and marketing, will help accelerate our growth going forward, particularly as we look to further expand our presence across the United States, one of the largest and growing markets for touchscreen technology in the world. With a strong balance sheet, growing earnings and leading edge technology, we strongly believe we are about to enter into an entire new era of growth and expansion, all of which has been supported largely by our dedicated employees, loyal client base and supportive shareholder base,” Source

Let's check the balance sheetThe CEO is quite positive about the future growth of the business in the United States. He also stated that the company showed a great balance sheet and growing earnings. This is what we found:December 31, 2016June 30,2016 ASSETSCash and cash equivalents$47,866$228Accounts receivable, net982,30725Prepaid expenses7,68429,753Inventories6,243—Other current assets1,290— Total Current Assets1,045,39030,006Total Assets$1,045,390$30,006 LIABILITIES AND STOCKHOLDERS' DEFICITAccounts payable$724,747$8,610Accrued liabilities and other payables37,427444Convertible debt19,667—Short term loans37,773—Loans from related party219,23354,800 Total Current Liabilities1,038,84763,854Total Liabilities1,038,84763,854 STOCKHOLDERS' EQUITY (DEFICIT):Common stock par value $0.00001: 100,000,000 shares authorized; 54,416,000 and 20,900,000 shares issued and outstanding as of December 31, 2016 and June 30, 2016544209Additional paid-in capital204,53055,883Accumulated deficit(198,531)(89,940) Total Stockholders' Equity6,543(33,848) Total Liabilities and Stockholders' Equity$1,045,390$30,006SourceIn our opinion, the company does not show large amount of debt. However, it has problems getting paid, as its accounts receivable are large. Thus, it cannot pay providers (accounts receivables is large too). Furthermore, the amount of assets as compared to the amount of liabilities is not worrying, but we would not call this balance sheet strong. The revenues obtained in Q4 2016 were good.

  • Revenue: $769,821
  • COGS: $549,400
  • Gross Profit: $220,421
  • Income from operations: $12,369
  • Net Income: $4,366

ConclusionThe company reported very interesting news to the market recently. First of all, it is locating a lot of personnel to the US to capitalize the growth of the US markets in the IoT sector. In addition, the company expects to deliver outstanding results for Q1 2017 period. We will be there to analyze the results as soon as they hit the tape. We will be updating our subscribers as soon as we know more. For the latest updates on ATLT, sign up below!Disclosure: We have no position in ATLT and have not been compensated for this article.

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