NEW YORK, NY/ ACCESSWIRE / September 24, 2018 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has issued an update on DirectView Holdings, Inc. (OTC PINK: DIRV) with a target price of $0.08.
The report is available here: September 2018 Update Note.
DirectView Holdings, Inc. (OTC PINK: DIRV, "DirectView") provides a full range of security, surveillance, and communications solutions to corporations, organizations, and government agencies in the United States. Under the guidance of co-founder and longstanding CEO Roger Ralston, DirectView has provided comprehensive communications and surveillance solutions since 2006. During that time the company has amassed an impressive customer base that includes Hilton, Sheraton, the US Postal Service, and Montessori, among others. DirectView completed acquisitions of two Texas-based private video security and surveillance companies in 2017, Video Surveillance, LLC and ApexCCTV, LLC ("Apex"), which have helped reinvigorate the company's sales momentum while adding a significant direct online sales presence at apexcctv.com. We see DirectView as having significant potential for growth if the company can execute its organic sales strategy while supplementing its core business with follow-on acquisitions similar in size to Apex.
DIRV reports record 1H18 revenues of $2.3mn
DIRV reported record 1H18 results on August 20, 2018, with revenues reaching $2.3mn in the first half of 2018, up 70.3% versus $1.4mn in the year-ago period. DIRV generated growth from sales execution and the impact of the Apex and Video Surveillance LLC acquisitions, which took place in April 2017. We note that revenues of $2.3mn in the first half of the year are already approaching full-year 2017 revenues of $2.9mn. Results also included record gross profit dollars for the company, which were $1.0mn versus $0.7mn in the year-ago period. For the quarter, 2Q18, the company maintained revenues above $1mn, reporting a top line of $1.1mn, a 9.8% drop versus $1.2mn in 2Q17. EPS was $0.11 due to a non-operating gain from a change in the value of derivative securities.
New business announcements suggest DIRV gaining traction
DIRV has issued multiple announcements citing new business wins in the last several months. The company reported new deals in the education sector from a Texas college and New York City private school and reported that it anticipated to sign a seven-digit master sales contract with Mission Foods providing extensive surveillance and access solutions for the company's new logistics facility outside of Dallas, TX. Additional recent sales highlights of note include a new $150,000 video security contract for a premiere New York City hotel. In its announcement, DIRV management noted that the deal may be a harbinger of future business in the sector, stating that many hotel owners in New York City are opting to overhaul their existing and outdated security and surveillance systems. We note the hotel sector has been a source of strength in the past for DIRV, which counts Marriott, Trump Hotels, and Hilton among past installations.