Scientific Learning Corporation (OTCMKTS:SCIL) is advancing on its growing business and has limited downside with its $0.15 cash per share on its balance sheet. The stock broke out of a long base late last year on heavy volume sending shares up over 300%. SCIL has been trading sideways and advancing quietly and steadily over the last few months. It is attempting to breakout in a big way again after climbing to a new 52-week high of $0.47. SCIL gained over 9% today on light volume with only 508 shares trading hands.
Scientific Learning Corporation (OTCMKTS:SCIL) shares could be setting up for some massive gains since it has breached is prior breakout high. It wouldn’t be surprising to see this rally accelerate as volume picks up. It is easy to see why investors are excited about this microcap company given its most recent financial performance.
SCIL recently provided a business update for full year 2015 where the company posted its first sales growth since 2009. Scientific Learning Corporation (OTCMKTS:SCIL) generated more than $0.7 million in free cash flow. Operating income increased by 26% to $1 million and cash at the end of the year was $3.5 million, an increase of $0.7 million from 2014. SCIL strategic focus is on students that struggle the most, special education, tier 3 response to intervention (RTI3), and ELL, including students from poverty.
The CEO quoted saying, “Even with continued limited resources, our development and product management team released important new capabilities to our customers and the market, providing options of deploying Fast ForWord® and Reading Assistant® solutions on the iPad®, Chrome Browser and Chromebook platforms. They also continued to strengthen our core platform, MySciLearn, which continues to scale and perform exceptionally, not only in the K-12 school environment but also in our Consumer, Clinical and International market segments,”
Some highlights at Scientific Learning Corporation (OTCMKTS:SCIL) are K-12 sales have increased over 14% and ASPs climbed 9% with current customers. Subscription revenue increased 4% relative to 2014. Fast ForWord and Reading Assistant are now available in over 55 countries. SCIL is seeing huge increase in demand as evidence by its 45,000 K-12 new leads and 10,000 consumer leads.
SCIL is an education company. It develops, distributes and licenses technology. The core products include Fast ForWord, Fast ForWord Language and Literacy, Fast ForWord Reading, Reading Assistant, Results Now! and BrainPro. To facilitate the use of products, it offers a range of on-site and remote professional and technical services, as well as phone, e-mail and Web-based support. The Company sells its products to principal market, K-12 schools and districts in the United States and Canada, using a direct sales channel, including both inside and field sales personnel. In addition to selling to K-12 schools, the Company sells its products to and through private practice professionals and learning centers, and international value-added resellers.
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SCIL is currently trading at a $10.8 million market valuation. SCIL exciting story is just beginning. This company is turning around and poised for significant growth. The company generated over $0.7 million cash and has over $3.5 million in liquid assets. That means it has over $0.15 per share in cash. If that isn’t exciting enough, SCIL had its first sales growth since 2009.
We will be updating on SCIL when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with SCIL.
Disclosure: we hold no position in SCIL either long or short at the publication of this article and we have not been compensated for this article.