Research Analyst at Alliance Global Partners
Kevin Pimental is an Equity Research Associate at Alliance Global Partners, specializing in financial analysis and equities research across various sectors. He covers specific companies for clients in the investment space, leveraging his expertise in financial modeling and market strategy to inform actionable recommendations; quantitative performance metrics and TipRanks rankings are not publicly available. Pimental began his finance career after serving with the US Navy, transitioning into investment analysis and joining Alliance Global Partners in recent years. He holds FINRA registration as a broker (CRD#: 7558804), underscoring his credentials in regulated securities analysis.
Kevin Pimental, on for Brian Kinstlinger, asked about business trends with Ooma's largest UCaaS customer, IWG Regis, and whether to expect meaningful growth from that account in the next 12-18 months.
CEO Eric Stang responded that the planned rollout to IWG Regis is complete across all targeted countries. As a result, he expects the revenue contribution from this customer to be essentially stable going forward.
Kevin Pimental, on behalf of Brian Kinstilger at Alliance Global Partners, inquired about the progress of converting large MOUs into signed contracts, which ones were closest to closing, and the primary uses of the recent capital raise, including potential M&A.
Jay Chandan, Chairman & CEO, confirmed that MOUs for Wanhai Port and ADE were already converted to contracts and that other projects, like one with the Thai police, are in mature stages with completed POCs. He also stated the capital raise is for funding large projects, supporting M&A in India and the U.S., and R&D. Bruce Bower, CFO, added that project lifecycles vary and the company is cautious with forecasting due to potential shifts in timelines and scope.
Asked for an update on the progress of converting large MOUs into signed contracts and inquired about the primary uses of the recent capital raise, including potential for M&A or increased expenses to drive growth.
The company confirmed that the Wanhai Port and ADE MOUs have been converted to contracts, with others in final stages. The recent $105M capital raise is intended to fund large projects requiring significant bid bonds, pursue M&A opportunities in India and the US, and invest in R&D for products like SD-WAN and co-engineering solutions with partners like NVIDIA.