Shareholders Applaud Big Changes at Datameg
Datameg Corporation [[DTMG.OB]] shares continued to soar with another 20 percent move to the upside after rallying more than 500 percent over the past two months. The move comes after a series of customer acquisitions for subsidiary, American Marketing & Sales, which is now slated to be sold to Blue Earth Solutions [[BESN.OB]] for $1.9 million in an all-stock transaction.
On March 18, 2009, Datameg entered into an agreement to sell its American Marketing & Sales subsidiary to Blue Earth Solutions for one million shares of common stock, according to an 8-K filing with the U.S. SEC. The subsidiary provides finished food packaging, caterware, and office products nationwide to major supermarkets, food retailers and office supply stores.
The American Marketing & Sales division accounted for approximately 77 percent of Datameg’s assets and 99% of its revenues as of September 2008. The company’s remaining assets will include its telecommunication subsidiary NetSymphony Corporation, which subcontracts with QoVox Corporation and third party consultants to setup and maintain VoIP networks.
Specifically, NetSymphony designs, develops and sells an active voice quality test system, capable of monitoring and providing analytical/statistical data that characterizes the connectivity and measurement of voice quality across communications networks. The company is developing IP-based testing interfaces that are software based as well as tools and techniques for network wide fault identification, isolation and troubleshooting.
These services are seen as necessary in the fast-growing VoIP industry. Yankee Group and IDC estimated that subscribers to the service would jump from three million in 2005 to more than 27 million in 2009 as consumers look to lower costs and improve functionality. Service providers include traditional carriers like AT&T [[T]] as well as emerging providers like Vonage [[VG]]. Companies wishing to switch to VoIP need tools like NetSymphony’s to test new solutions and keep things running smoothly.
As of its latest quarter, NetSymphony commenced the sale of its Maestro System but only $3,250 of revenues were recognized during the quarter, as revenue recognition criteria had not yet been met for the bulk of the sales contracts for the September 2008 quarter. However, the company recently announced a $35,000 payment from Time Warner Cable [[TWC]] for its products, meaning that adoption of its technology is making progress.
In the end, Datameg Corporation is getting rid of its largest asset in order to fund and maintain its VoIP business. The move is seen by some as risky as revenues may begin to slow, however many investors are bullish on the prospects of the new start-up. Prudent investors may want to wait until revenues start coming in to get a better idea of what to expect, but some speculators appear to be building up a position in the company much earlier.
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