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Asure Software: From Turnaround To Strong Growth

|Includes: Asure Software, Inc. (ASUR)

Asure Software, Inc. (NASDAQ: ASUR), a provider of web-based workforce software solutions, recently announced positive results for the fourth quarter of 2011. Among the highlights:

  • Revenue grew 52% to $3.65 million compared to the fourth quarter of 2010, and both revenue and EBITDA exceeded guidance.
  • Cloud bookings grew 101% year-over-year and 63% sequentially during the fourth quarter.
  • The Company generated free cash flow of $1.47 million, or $0.48 per share.
  • ASUR won or captured additional business from a number of clients, including (NYSE: CRM), GE (NYSE: GE), Kaiser Permanente and the U.S. Department of Agriculture.

The improvements were partially due to the Company's fourth-quarter acquisitions of ADI Time and Legiant, providers of cloud computing time and attendance software and management services. With these acquisitions in place, ASUR has an expanded product portfolio that reaches into new areas of the workforce software market.

As we ve discussed, ASUR has undergone a turnaround in the past two years and is now gaining momentum in the multibillion-dollar human capital management (NASDAQ:HCM) applications market. The Company serves blue-chip clients such as Lockheed Martin (NYSE: LMT), Dell (NASDAQ: DELL), McDonald s (NYSE: MCD) and Microsoft (NASDAQ: MSFT).

During the Company's 4Q11 earnings conference call, CEO Pat Goepel stated, "2011 was the year Asure moved from a turnaround story to a growth story." ASUR's management expects annual revenue to grow 65% year-over-year in 2012 to reach $18 million, with EBITDA of $4 million and gross margins of 20% to 25%.

Shares of ASUR have more than doubled in recent months and are set to split in late April. Research suggests that stock splits are correlated to strong stock price performance in both the near and long term. Take advantage of these positive tailwinds and start building a position today.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit