Omtool Twists In The Wind (OMTL)

May. 9.06 | About: Omtool, Ltd. (OMTL)

Omtool (NASD:OMTL) makes products that process, route and capture electronic and paper documents. Their primary product is called AccuRoute. It allows companies to centralize documents which can then be accessed from multiple locations and PCs. Pretty neat stuff.

Unfortunately, the company's performance has been a disaster. The first quarter, ending March 31 produced revenue of $3.3 million. That was down from $3.9 million in the same period a year ago. The company had an operating loss of $1.4 million compared to a small profit of $108,000 last year.

Omtool's revenue has been roughly flat for the last three years running about $14 million per annum. The company lost money in 2003 and 2005 and had an operating profit of almost $1.5 million in 2004. As the company moved through the quarters of 2005, revenue was stuck in neutral.

Two years ago, the stock traded close to $12. It is now $5.51 on a 52-week range of $4.90 and $9.89. The company only trades 1,500 shares a day.

Someone needs to give Omtool a rabbit and a hat.

OMTL 1-yr chart:

Douglas A. McIntyre is the former Editor-in-Chief and Publisher of Financial World Magazine. He is also the former president of Switchboard.com, which was the 10th most visited site in the world at the time, according to MediaMetrix. He has been chief executive of FutureSource LLC and On2 Technologies, Inc. and has served on the boards of TheStreet.com and Edgar Online. He does not own securities in companies he writes about. He can be reached at douglasamcintyre@gmail.com.