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Accounts receivable represents a big portion of revenue for many companies, but as the name implies, these funds are not yet “received.” This can therefore be an area of concern.

When accounts receivable becomes a larger percentage of the revenues reported by a company, it indicates lower-quality revenues, because there is no guarantee that accounts receivable will be paid back in full. Companies with shrinking accounts receivable (relative to revenue) are viewed favorably.

We ran a screen on the tech sector for stocks with positive receivable and revenue trends: increases in quarterly revenue year-over-year outpacing changes in quarterly accounts receivable, and a decrease in quarterly accounts receivable as a percent of quarterly current assets year-over-year.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. (To access a complete analysis of this list's recent performance, click here.)

Do you think these companies have strong balance sheets? Use this list as a starting point for your own analysis.

List sorted by difference between growth in revenue and accounts receivable.

1. EasyLink Services International Corporation (ESIC): Provides value added services that facilitate the electronic exchange of documents and information between enterprises, their trading communities, and their customers. Market cap of $126.01M. MRQ revenue has increased 106.73% ($47.01M vs. $22.74M y/y) while MRQ accounts receivable has decreased 7.94% ($28.42M vs. $30.87M y/y). Accounts receivable/current assets has decreased from 52.16% to 49.75%, comparing 3 months ending 2011-10-31 to 3 months ending 2010-10-31. The stock has lost 4.82% over the last year.

2. Agilysys Inc. (AGYS): Provides information technology (IT) solutions to corporate and public-sector customers primarily in North America. Market cap of $175.61M. MRQ revenue has increased 8.64% ($53.59M vs. $49.33M y/y) while MRQ accounts receivable has decreased 81.25% ($31.48M vs. $167.9M y/y). Accounts receivable/current assets has decreased from 71.95% to 20.57%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. This is a risky stock that is significantly more volatile than the overall market (beta = 2.37). The stock has gained 25.97% over the last year.

3. Procera Networks, Inc. (PKT): Provides network traffic awareness, analysis, and control solutions for broadband service providers. Market cap of $245.51M. MRQ revenue has increased 157.72% ($12.19M vs. $4.73M y/y) while MRQ accounts receivable has increased 83.31% ($12.41M vs. $6.77M y/y). Accounts receivable/current assets has decreased from 36.15% to 23.63%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has gained 192.93% over the last year.

4. Motorola Solutions, Inc. (MSI): Provides business and mission critical communication products and services for enterprise and government customers worldwide. Market cap of $15.12B. MRQ revenue has increased 10.32% ($2,105M vs. $1,908M y/y) while MRQ accounts receivable has decreased 55.02% ($1,638M vs. $3,642M y/y). Accounts receivable/current assets has decreased from 20.96% to 16.86%, comparing 3 months ending 2011-10-01 to 3 months ending 2010-10-02. The stock has gained 27.32% over the last year.

5. Acorn Energy, Inc. (ACFN): Provides energy infrastructure management solutions worldwide. Market cap of $97.24M. MRQ revenue has increased 25.62% ($5.05M vs. $4.02M y/y) while MRQ accounts receivable has decreased 39.29% ($7.99M vs. $13.16M y/y). Accounts receivable/current assets has decreased from 48.29% to 10.99%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has had a good month, gaining 10.34%.

6. Frequency Electronics Inc. (FEIM): Engages in the design, development, and manufacture of high-technology frequency, timing, and synchronization products for satellite and terrestrial voice, video, and data telecommunications. Market cap of $60.47M. MRQ revenue has increased 20.11% ($15.05M vs. $12.53M y/y) while MRQ accounts receivable has decreased 39.88% ($7.13M vs. $11.86M y/y). Accounts receivable/current assets has decreased from 18.64% to 10.26%, comparing 3 months ending 2011-10-31 to 3 months ending 2010-10-31. The stock has gained 5.22% over the last year.

7. BroadSoft, Inc. (BSFT): Provides software that enables fixed-line, mobile, and cable service providers to deliver voice and multimedia services over Internet protocol (IP) based networks. Market cap of $942.88M. MRQ revenue has increased 60.22% ($35.68M vs. $22.27M y/y) while MRQ accounts receivable has increased 9.80% ($33.61M vs. $30.61M y/y). Accounts receivable/current assets has decreased from 35.91% to 15.04%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock is a short squeeze candidate, with a short float at 23.27% (equivalent to 9.18 days of average volume). The stock has performed poorly over the last month, losing 10.29%.

8. OCZ Technology Group, Inc. (OCZ): Designs, develops, manufactures, and distributes computer components for computing devices and systems worldwide. Market cap of $359.66M. MRQ revenue has increased 106.18% ($78.45M vs. $38.05M y/y) while MRQ accounts receivable has increased 58.04% ($45.01M vs. $28.48M y/y). Accounts receivable/current assets has decreased from 58.13% to 28.96%, comparing 3 months ending 2011-08-31 to 3 months ending 2010-08-31. The stock is a short squeeze candidate, with a short float at 42.5% (equivalent to 13.23 days of average volume). It's been a rough couple of days for the stock, losing 8.79% over the last week.

9. Internet Initiative Japan Inc. (IIJI): Provides Internet connectivity, outsourcing, and systems integration services to customers primarily in Japan. Market cap of $749.92M. MRQ revenue has increased 29.18% ($23,844.73M vs. $18,458.82M y/y) while MRQ accounts receivable has decreased 18.05% ($14,441.84M vs. $17,622.89M y/y). Accounts receivable/current assets has decreased from 55.62% to 48.02%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has gained 34.32% over the last year.

10. Aspen Technology, Inc. (AZPN): Provides integrated process optimization software solutions for manufacturers in process industries, and engineering and construction firms. Market cap of $1.68B. MRQ revenue has increased 18.86% ($51.23M vs. $43.1M y/y) while MRQ accounts receivable has decreased 26.15% ($76.36M vs. $103.4M y/y). Accounts receivable/current assets has decreased from 43.39% to 31.67%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has gained 35.89% over the last year.

11. LSI Corporation (LSI): Designs, develops, and markets storage and networking semiconductors and storage systems worldwide. Market cap of $3.26B. MRQ revenue has increased 20.76% ($546.91M vs. $452.88M y/y) while MRQ accounts receivable has decreased 20.86% ($248.39M vs. $313.87M y/y). Accounts receivable/current assets has decreased from 25.35% to 17.38%, comparing 3 months ending 2011-10-02 to 3 months ending 2010-10-03. The stock has had a couple of great days, gaining 5.27% over the last week.

12. Clearfield, Inc. (CLFD): Manufactures, markets, and sells telecommunications equipment and products in the United States. Market cap of $76.32M. MRQ revenue has increased 35.10% ($10.7M vs. $7.92M y/y) while MRQ accounts receivable has decreased 0.31% ($3.23M vs. $3.24M y/y). Accounts receivable/current assets has decreased from 27.14% to 15.93%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has had a couple of great days, gaining 7.27% over the last week.

13. NVIDIA Corporation (NVDA): Provides visual computing, high performance computing, and mobile computing solutions that generate interactive graphics on various devices ranging from tablets and smart phones to notebooks and workstations. Market cap of $8.49B. MRQ revenue has increased 26.34% ($1,066.18M vs. $843.91M y/y) while MRQ accounts receivable has decreased 7.07% ($371.26M vs. $399.5M y/y). Accounts receivable/current assets has decreased from 14.23% to 10.61%, comparing 13 weeks ending 2011-10-30 to 13 weeks ending 2010-10-31. The stock has lost 6.52% over the last year.

14. KEMET Corp. (KEM): Manufactures and sells capacitors worldwide. Market cap of $308.39M. MRQ revenue has increased 6.81% ($265.51M vs. $248.59M y/y) while MRQ accounts receivable has decreased 25.79% ($114.5M vs. $154.29M y/y). Accounts receivable/current assets has decreased from 32.83% to 21.22%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. It's been a rough couple of days for the stock, losing 5.08% over the last week.

15. Jabil Circuit Inc. (JBL): Provides electronic manufacturing services and solutions in the Americas, Europe, and Asia. Market cap of $4.18B. MRQ revenue has increased 10.86% ($4,280.3M vs. $3,860.93M y/y) while MRQ accounts receivable has decreased 21.41% ($1,134.78M vs. $1,443.88M y/y). Accounts receivable/current assets has decreased from 31.02% to 22.10%, comparing 3 months ending 2011-08-31 to 3 months ending 2010-08-31. This is a risky stock that is significantly more volatile than the overall market (beta = 2.01). The stock has gained 3.64% over the last year.

16. Kongzhong Corp. (KONG): Provides wireless interactive entertainment, media, and community services to mobile phone users in the People's Republic of China. Market cap of $155.58M. MRQ revenue has increased 2.87% ($38.04M vs. $36.98M y/y) while MRQ accounts receivable has decreased 27.63% ($24.17M vs. $33.4M y/y). Accounts receivable/current assets has decreased from 19.03% to 12.47%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. It's been a rough couple of days for the stock, losing 8.61% over the last week.

17. ARM Holdings plc (ARMH): Designs microprocessors, physical IP, and related technology and software, as well as sells development tools to enhance the performance of high-volume embedded applications. Market cap of $12.25B. MRQ revenue has increased 19.75% ($120.17M vs. $100.35M y/y) while MRQ accounts receivable has decreased 10.10% ($85.44M vs. $95.04M y/y). Accounts receivable/current assets has decreased from 25.80% to 18.96%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has gained 38.16% over the last year.

18. Formula Systems (1985) Ltd. (FORTY): Operates as an information technology (IT) solutions and services company worldwide. Market cap of $216.34M. MRQ revenue has increased 20.71% ($161.5M vs. $133.79M y/y) while MRQ accounts receivable has decreased 8.83% ($140.19M vs. $153.77M y/y). Accounts receivable/current assets has decreased from 52.25% to 51.55%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 4.64%, current ratio at 1.85, and quick ratio at 1.83. It's been a rough couple of days for the stock, losing 6.71% over the last week.

19. MOCON Inc. (MOCO): Develops, manufactures, markets, and services measurement, analytical, and monitoring products to detect, measure, and analyze gases and other chemical compounds; and provides related consulting services. Market cap of $85.20M. MRQ revenue has increased 22.06% ($9.46M vs. $7.75M y/y) while MRQ accounts receivable has decreased 6.65% ($4.63M vs. $4.96M y/y). Accounts receivable/current assets has decreased from 26.16% to 22.01%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has gained 32.88% over the last year.

20. FARO Technologies Inc. (FARO): Designs, develops, manufactures, markets, and supports portable, software driven, 3-D measurement systems used in a range of manufacturing, industrial, building construction, and forensic applications. Market cap of $759.99M. MRQ revenue has increased 43.10% ($64.81M vs. $45.29M y/y) while MRQ accounts receivable has increased 17.24% ($50.67M vs. $43.22M y/y). Accounts receivable/current assets has decreased from 22.03% to 21.62%, comparing 3 months ending 2011-10-01 to 3 months ending 2010-10-02. The stock is a short squeeze candidate, with a short float at 5.1% (equivalent to 8.94 days of average volume). The stock has gained 45.08% over the last year.

Accounting data sourced from Google Finance; all other data sourced from Finviz.

Source: 20 Tech Stocks With Positive Receivable Trends