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Augme Technologies Cuts Losses, Projects 2.6 million in 2011(OTCBB:AUGT)

Today Augme Technologies reported their fourth quarter and full year 2010 results. The company logged revenue for the quarter of $.2 million and a full year revenue of .3 million, flat from the same period last year. AUGT also noted that they had signed a binding letter of intent with World Talk Radio for their iRadio business and will be receiving royalties as long as WTR continues to broadcast. 
The given outlook in today’s press release projects 2.8 million in revenue for 2011. With 1 million in revenue projected for the first half of that same year. It was also noted on the call that Augme’s fiscal year ends on February 28th. 
After the prepared comments, Augme Technologies highlighted the current status of their legal battle with AOL and Dakota. The company alleges that Dakota is a shell company with no assets of their own and is run by AOL, therefore their legal action against the two has been combined into one action. 

I was able to ask a question on the call regarding AUGT’s entrance into the Mobile App market. It was explained to me that there are multiple third party apps (Augme’s customers) that call on the various ADLife and ADBoom services. We won’t be seeing any specific Augme app anytime soon, although it was mentioned that an image recognition suite for scanning bar codes could be available soon. 
Currently AUGT is trading at 1.09 down .06 or 5.22%. The company’s stock price has been dropping steadily over the past year, and it appears that investors were selling their stock as the call was in progress. Since then, the price has taken back about half the ground lost during the call. 


In the tech industry it is hard to find a midsized company; there are large corporations such as Microsoft, Apple, Google, Oracle who eat up small companies for their patents and intelligence capital. Tech giants are catching on to the mobile marketing space since Google now has AdMob, and I begin wonder if any big company will come along and offer Augme some cash for their services in the near future. As said on the call, the time to prove that mobile advertisement works is over, we know it works. Now the matter at hand is how to monetize the content. Through scalability and huge reach, a giant company could see potential in AUGME Technologies.
This is not to say that Augme cannot succeed on its own. Over the past quarters the company has begun to cut their losses, profitability could be just around the corner.  

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Disclosure: no positions