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Buy D-BOX ahead of Thursday earnings, says Industrial Alliance

Li says the bulk of D-BOX’s growth should originate from the commercial theatre segment, where he sees growth in excess of 60%. He expects the company will have had more than 4500 MFX seats installed and operational by quarter’s end.On Thursday, D-BOX Technologies (TSX:DBO) will report its Q3, 2013 results. The company is coming off its best quarter ever, revenue wise. Its Q2, 2013 topline of $3.71-million was an 83% increase over the same period a year prior.

Industrial Alliance analyst Steve Li thinks D-BOX will be challenged to best its Q2 topline, but will continue to show strong year-over-year growth. He thinks the company’s Q3, 2013 revenue will double the $1.8-million it reported in the same period in 2012. In a research update to clients this morning, Li reiterated his Speculative Buy rating and 12-month target price of $1.00 on D-BOX.

Longueuil, Quebec based D-BOX was founded in 1992, and the two-decades since have seen the company perfect its seat technology. D-BOX’s MFX systems use motion effects specifically programmed for a particular film, TV series or video game, which are then sent to a motion generating system integrated within either a platform or a seat. While, as late as 2009, the company struggled to build a consistent revenue stream, things improved when management decided to dedicate itself to the commercial theatre market. Although D-Box is still losing money, revenue is improving, and Li thinks the upcoming Q3 may be the company’s third straight of positive EBITDA.

Li says the bulk of D-BOX’s growth should originate from the commercial theatre segment, where he sees growth in excess of 60%. He expects the company will have had more than 4500 MFX seats installed and operational by quarter’s end.

Shares of D-BOX closed today up 4.2% to $.25.

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Shares of D-Box closed today

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About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

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