Breaking down the balance sheet of Redknee Solutions (TSX:RKN) Quant Snapshot: Redknee Solutions (TSX:RKN)

Redknee Solutions (TSX:RKN) recently reported its fiscal 2009 results. It was another year of revenue growth for the Mississauga based provider of telecommunications billing support software. The improved numbers helped The Company hit number three on our list of top performing wireless stocks. We look at the updated data to see if Redknee might still be a value for investors.

1. Price to sales: 117%

As of November 25, 2009 (FY 2009) Redknee had 59.2 million shares
outstanding.The price as of December 24, 2009 was $1.05 This gives The Company a market capitalization of $62.17 million. In the trailing four quarters, sales totaled $53.3 million.

2. Cash to Market Cap: 41.5%

As of FY 2009, Redknee’s reported cash and short term investments was $25.8 million. The Company’s Market Cap, as of December 24th was $62.17 million.

3. Debt to market Cap: $0

As of FY end 2009 reported long term debt was $0

4. Trailing Three year growth rate: 13.6%

Redknee’s sales were $37 Million in 2005. Sales grew to 53.3 Million
in 2008.

5. Enterprise Value to Sales: 68.3%

Enterprise Value as of FY end 2009 is $36.4 million, based on a
market
cap of $62.17 million plus zero long term debt, minus cash
and short term investments of of $25.8 million. Sales for the trailing four quarters totaled $53.3 million.

All financial information about Redknee is gleaned from
their filings with the System for Electronic Document Analysis and
Retrieval (SEDAR)
All calculations are based on The Company’s closing share price as of
close December 24th, 2009: $1.05
Sales from trailing four quarters: $53.3 million
Cash and short term investments as of November 25, 2009 (FY end 2009 Quarter): $25.8 million
Shares outstanding: $59.2 million.