This small cap company saw its revenues rise 35%, to a record $13.8 million, last quarter, due to expanded contracts, as well as a nice dose of new recurring revenue.
Auxilio (AUXO)
from The Quiet Investor
I continue to espouse Auxilio (AUXO), despite the sideways movement of the stock price over the past six months.
In a highly skeptical market, the company has not shown the bottom line growth that investors want to see so far. But I believe those numbers will make an appearance in the coming quarters.
The top line growth of Auxilio will be more in evidence as the company has won two major contracts in the past half year. The first few months of any new contract absorb a number of costs as Auxilio takes over the printing services of a hospital group. Thereafter, the revenues and the consequent earnings begin to click in regularly and are sustained over the life of the contract (usually five years).
AUXO is just beginning to penetrate this market (hospital printing services) and has only about 135 campuses of the 5600 in the US. As the data base grows and absorbs the added new contracts, the bottom line should be more reliable and incremental.
Stay the course; the best is yet to come.
John Gay, The Quiet Investor, 32 Kyle Ct., Willowbrook, IL 60527, 630-654-1254, June 19, 2015