Insignia Systems, Inc. (NASDAQ:ISIG) reported strong operational and financial results for its third quarter, driven by strong sales of its POPS® and other core legacy products and achievement of certain important corporate milestones. The company reported 2.7% YoY increase in its net sales to $7.5 million during 3Q14. The company reported 53.7% and 20% YoY increase in its operating income and net income to $838,000 and $424,000 during 3Q14, respectively.
Technical analyst have identified strong buy signals in ISIG.
Insignia Systems also secured continued access in all retailers during the third quarter. The company had previously served it under the ‘Retail Access and Distribution Agreement’ with Valassis. Direct contracts with several of these retailers positively impacted company’s revenues and margins, starting the third quarter. In addition, it also allows for greater communication with retail partners, stronger product and service control. It also enables the company to more efficiently introduce new innovative solutions for its retails partners, helping them benefit from significant ROI.
Insignia Systems, Inc. (NASDAQ:ISIG) offers in-store advertising products and services for CPG (consumer packaged goods) manufacturers and retailers. Its core POPS® (Point-Of-Purchase Services) program provides in-store advertising services through POPSign program, which delivers product-specific messages at the point-of-purchase. The company also offers laser printable cardstock and vinyl labels, Stylus software, maintenance agreements, and supplies related to the impulse retail system.
Subsequent to 3Q14, Insignia launched The Like Machine, an innovative new product, into the market. The product offers an easy way to shoppers to express their opinion about what they are shopping and to be informed by the decisions of others, right at the shelf or point of purchase. The device enables shoppers to engage with a brand at the shelf. The company also signed a licensing agreement with TLM Holdings, LLC, to bring this product to the grocery, drug and dollar channels.
Glen Dall, President and CEO of Insignia Systems, Inc. (NASDAQ:ISIG), said that the company would continue on a path of innovation in-store and to market products that capitalize on the shopper behavior trends.
With sound investment strategy under execution and 25% increase in backlog for programs running in the next 12 months, the company is well-positioned to leverage its strong balance sheet to drive the growth momentum further.
Technicals
Insignia Systems, Inc. (NASDAQ:ISIG) used to trade in a much higher band in the period of 2009-2011 but the crash in 2011 brought the stock from $7 levels to sub-$2 levels very fast. Almost all of the year 2012 and most of 2013 was spent to make a Rounded Bottom base. If this Saucer pattern survives, then this stock can turn out to be a multibagger in the coming year, with targets of $5 and then $7.50. The recent short term range breakout may increase the bullish momentum.
