e-Future Information Technology (NASDAQ: EFUT) is indicated up about 15% after the Chinese supply chain management software and services company posted earnings last night. It posted revenues of $3.5 million and gross profit was $2 million, with non-GAAP income at $1.1 million. While this is small, it is more than a 100% gain in revenues. It also listed its deferred revenue as of June 30 as being $8.9 million and said it sees 2008 total revenues of $19 to $20 million with adjusted EBITDA of $5 to $6 million on a non-GAAP basis.
What is interesting here is not just the size. The market cap beforethis morning’s pop is only about $33 million. That number may actuallybe higher now as it noted that a recent convertible note privateplacement of $10 million had been converted by 90% into equity. Thereare also no research analysts that follow the stock. This is still atiny company but it is gapping up more than 12% to $12.40 in pre-market trading.
The other issue to watch is that its 52-week trading range is $9.35 to$34.00. If there has ever been a cult stock that traders chase aroundon news it is this type of stock. This is thin volume as we have onlyseen about 9,900 shares trade so far this morning and average daily volume isclose to 59,000 shares and its most recent short interest is about206,000 shares. It also has no stock options.
Let the games begin.
Jon C. Ogg
September 9, 2008
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