MYOS Corporation (NASDAQ:MYOS), ERF Wireless (OTCQB:ERFB), and Integrated Security Systems (OTC:IZZI) are three small stocks that recently announced new revenues that move them closer to profitability. From the nutritional supplements space to the oil and gas industry, these stocks may be worth a second look for smaller investors looking for new opportunities.
MYOS Enhances Sales With Distribution Deal
MYOS Corp. is a company focused on the discovery, development and commercialization of muscle health and performance therapeutic products. It recently announced a new distribution deal that could bolster its revenues by $5 million per year in the 12 months subsequent to its scheduled September 2012 product launch. The deal with Maximum Human Performance, a leading nutritional supplement marketing company, will provide exclusive U.S. distribution rights to the firm. According to Quantcast estimates, Maximum Human Performance's website receives approximately 3,370 visitors per month, while the firm distributes to GNC, Vitamin Shoppe and other retailers in more than 30 countries worldwide.
In its latest 10-Q filing, MYOS reported revenues of $24,541, an operating loss of $423,024, and a net loss of $498,851. Successfully generating $5 million in sales over the year would result in about $1.25 million in sales per quarter, which should be enough to push the company toward profitability without few additional capital raises.
Investors should be aware that MYOS is a micro-cap stock, however, which involves increased risk. Micro-cap stocks can be relatively illiquid and difficult to buy and sell at exact times. Oftentimes, investors should use limit orders to initiate and exit positions.
ERF Wireless Sees Enormous Jump in Profit
ERF Wireless, a leading provider of enterprise-class wireless and broadband products and services, recently reported a 46% increase in revenues and a 102% increase in gross profits in its latest 10-Q filing with the SEC. The results were driven by record results posted by its Energy Broadband Inc. subsidiary.
While the company still reported a net loss, the figure was reduced by $72,000 compared to the prior year when removing the divesture of certain non-core wireless broadband assets in the prior-year comparison. Focusing on servicing the booming oil and gas sector should help the company continue its growth and eventually push through to a net profit.
According to ERF Wireless CEO Dr. H. Dean Cubley, "With recent new major drilling customer wins and a corresponding substantial rig number increase with our existing customers, we anticipate that our financial results will continue to positively increase with the accelerating revenue to meet our objectives of cash flow positive and profitability during 2012."
iSatori Reports Doubling of Net Income
iSatori Technologies Inc., a subsidiary of Integrated Security Systems Inc., a leader in the creation and marketing of nutritional supplements, recently announced that its first quarter sales jumped 45% and its pre-tax net income improved 107% over the prior year. However, the net income was impacted by a $500,000 divesture of a dormant product line.
While Integrated Security Systems has yet to recognize this revenue, as of its latest 10-Q filing with the SEC, the parent company did report some $4.6 million in cash and equivalents on its books and just $156,020 in current liabilities. This $4.5 million in shareholders' equity represents a significant portion of the company's $13.18 million market capitalization.
With its improving sales and strong balance sheet, investors may want to keep an eye on this stock moving forward. CEO Stephen Adele, who also owns nearly half of the company's stock according to a 13D filing with the SEC, said: "We remain optimistic about where we are headed and have more exciting product launches planned for 2012."
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.