While the first quarter of 2012 was positive for the major indexes, the Mobile Index continued to outshine returning an impressive 52%. Just this past week, newcomer Millennial Media (MM) saw its shares climb over 80% from its IPO price of $13, well above the predicted range from just months ago. Here is a short summary of key highlights from Q1.
Dec. 30 2011 Close
Augme Technologies (AUGT.OB)
Elephant Talk (ETAK)
Glu Mobile (GLUU)
Mitek Systems (MITK)
Millennial Media IPO
Augme expects to report revenue of approximately $5.1 million for the fourth quarter of fiscal 2012 ended February 29, 2012, based on a preliminary review of results. This compares to revenue of $4.43 million in the third quarter ended November 30, 2011 and revenue of $0.96M for Q4 of FY 2011.
I continue to view Augme as the value play in the group, possessing the most favorable risk versus reward dynamics.
FY 11 revenues were $32M verse $37M for FY10 but the Mobile section of revenue increased to $5.8M in FY11compared to $2.8M in FY10.
Total non-GAAP revenue was $20.1 million for the fourth quarter of 2011 compared to $15.5 million in the fourth quarter of 2010.
Total revenue for the first quarter of 2012 was $3.5 million, an increase of 151% over total revenue of $1.4 million for the first quarter of 2011.
Revenue of $87.1 million, an increase of 52% from Q4 2010;
IP Highlights Q1
- Augme Technologies sued Velti for patent infringement on March 12th.
- Yahoo (YHOO) threatens Facebook with infringement suit unless they license their IP and after Facebook refuses Yahoo sues them on March 13th.
- Facebook fights back and buys 750 patents from IBM.
While Q1 generated exceptional returns as expected, I continue to believe this space will outperform the major indexes and market in general. Investors should note that the mobile market is really just now emerging from its embryonic state. The mobile revolution is like something many of us have not experienced in our lifetimes and with that, it is providing for once of a lifetime investment opportunities. Investors who truly understand the transformational nature of this technology revolution will be the ones rewarded with above average returns in their investment portfolios.