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 Omnicity Corp. (OMCY.OB) Sees Clear Path to Rapid Growth
Omnicity Corp wants to be rural America’s premier telecommunications and broadband Internet Service Provider. The company has developed a business model that has proven successful in thousands of rural Indiana homes, providing high-speed Internet service on a mass basis at a lower cost and more efficiently than wire or fiber optic solutions. With this model in hand, Omnicity is now growing rapidly through acquisitions with the goal of capturing the underserved and unserved rural and small town markets throughout America.
The majority of rural homes do not yet have access to broadband service. Cable is often unavailable, and DSL service is usually limited to urban/suburban areas. Traditional dialup service is simply no longer a viable solution, due to the growing audio/video content of the Web. Omnicity estimates that there are currently over 40 million homes, businesses, and other users in the rural U.S. that do not yet have adequate Internet service, representing a major growth opportunity for the company.
This growth is also expected to be fueled by the federal government’s strong support for the expansion of broadband, which recognizes that high-speed Internet service is now critical to a community’s potential for economic growth. A key part of this is the American Recovery and Reinvestment Act of 2009, providing $7 billion for broadband expansion, $2.7 billion of which is to be dedicated to rural areas.
Using advanced wireless technology, Omnicity is confident that they can reach those underserved markets at a lower cost than any of its competitors, providing voice, video, and data. Through acquisitions and partnerships, Omnicity projects a customer base of 170,000 subscribers over the next 5 years, generating revenues of approximately $87 million. In addition, the company expects to further spur growth through new services and products developed by its own R&D efforts.
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Omnicity Corp. (OMCY.OB) to Accelerate Its Acquisition Strategy with $1.17 Million Financing
Omnicity Corp, the Midwest’s largest and fastest growing fixed Wireless Internet Service Provider, today after the closing bell announced the closure of $1,170,000 in financing. This capital will be used to complete several asset purchase agreements in various stages of closure, assisting Omnicity in the furthering of its mission to bring broadband to the Heartland of rural America.
Greg Jarman, CEO of Omnicity, stated, “This financing allows us to accelerate our growth strategy and allows us to close on our acquisitions quickly. These acquisitions, combined with an aggressive set of sales and marketing campaigns, should more than double our subscribers, our network infrastructure and revenues. Subject to these acquisitions closing, it will be the second time we have doubled our business in the first year since going public.”
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Omnicity Corp. (OMCY.OB) Developing Major Partnerships/Acquisitions
Omnicity Corp, the Midwest’s largest fixed Wireless Internet Service Provider (WISP), recently announced an agreement with Cisco Systems (Nasdaq: CSCO) to display wireless broadband service throughout its network. Omnicity CEO, Greg Jarman, said, “There are only a few carrier-grade WiMAX vendors out there today, and we are excited to have chosen Cisco as our strategic equipment supplier. Having selected a vendor, we can now turn our attention to spectrum holders across the country.”
The recent announcement represents just one of several new deals signed up over the past few months, including acquisitions in Omnicity’s home state of Indiana:
• Acquisition of NDWave, Inc., Alexandria, IN
• Acquisition of North Central Communications, Peru, IN
• Acquisition of Forepoint Networks, Lafayette, IN
• Acquisition of Moreland Wireless, Henry County, IN
The above acquisitions have already given Omnicity over 3,000 new customers, resulting in a total subscriber base of over 5,000. In addition, the company partners with Rural Electric Municipal Cooperatives and Rural Telephone Companies, representing tens of millions of member-owners throughout the U.S.
Omnicity’s growth is reflected in the most recent financials, released October 27th, where the company announced an 89% jump in Q4 09 revenues, compared to the same quarter last year, and representing a 44% increase over Q3 09 revenues. Moreover, the company expects revenues to increase again in the coming quarter.
But all of this pales in comparison with Omnicity’s planned growth over the next several years, largely through acquisitions. The company expects both its customer base and revenues to grow by a factor of over 30.
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OMCY is a great buy
OMCY is a great buy. I think this is one of those stocks that you can say has truly been overlooked (or not looked at). With all this positive news, this one is bound to explode sooner than later!
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Looking at a great month ahead
We're looking at a great week and month ahead for Omnicity. With all this great news coming in and better looking financials, this one is a great pick.
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but how?
how will this gonna affect the productivity of a particular company?
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Expansion
OMCY is expanding by acquisition, which will decrease cash flow in short term, but increase revenues and lead to larger profits down the road. Also, even without the expansion, omnicity's revenues are increasing as more and more rural homes are wanting connection to highspeed broadband internet access.
But both you and I know that financials aren't exactly what drive penny stocks up. News is sometimes a good marker that more and more investors are watching this stock, just waiting to get in on it.
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Omnicity Corp. (OMCY.OB) Riding the Broadband Wave
Omnicity Corp., known for bringing wireless broadband services to rural America, is on top of one of the biggest waves in telecommunications, the rapid expansion of broadband services outside of the traditional urban and suburban base areas.
It goes without saying that the communications industry is the nervous system of today’s economy, generating global annual revenues of nearly $2 trillion. North America remains the largest telecommunications market, with revenues of over $½ trillion. Much of this, of course, is due to the continued growth of the Internet. Worldwide, there are now nearly 1½ billion Internet users. Data-intensive Internet applications such as Voice-over-Internet Protocol (VoIP) and video are key drivers in the telecommunication industry’s growth, providing increased demand for high-speed broadband capabilities.
The number of broadband connections is increasing rapidly as vendors and consumers require the ability to share large files, download music and games, and provide video or VoIP services. It is estimated that the total number of broadband lines in the 40 largest broadband countries will grow to over 600 million by 2013. However, growth in most of the richer countries is slowing, as service approaches saturation. According to Gartner Group, by 2012, broadband will be found in 25% of households worldwide, but the five top countries will have broadband penetration already exceeding 60%.
In less developed countries, however, there is still tremendous room for growth, and the number of broadband connections is expected to grow 10 times as fast as the more developed markets. Larger countries, like China and India, have already gone through a rapid initial growth phase, but are still expanding. China is forecasted to become the largest broadband country, with 153 million broadband lines, versus 117 million in the U.S. In addition, India and Brazil are expected to enter the top ten countries, with Russia as number 11. In the meantime, the demand for broadband in underserved areas in developed countries is also accelerating. Right now, the dominant fixed broadband technology is DSL, which controls 66% of the market.
Omnicity, as the Midwest’s largest fixed Wireless Internet Service Provider (WISP), sees the unserved and underserved areas of the U.S. as America’s next boom market for telecommunications. The company is already growing rapidly, largely through acquisitions, but still has a huge way to go. Most recently they announced an 89% jump in Q4 09 revenues compared to the same quarter 08. Omnicity expects both its customer base and revenues to grow by a factor of 30 over the next several years.
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Omnicity Corp.’s (OMCY.OB) Recently-Issued Corporate Update
Omnicity Corp. provides broadband access – including advanced voice, video and data services – to under-served and un-served small and rural markets. The company is the Midwest’s largest and fastest growing fixed wireless internet service provider.
The company issued a corporate update summarizing the status of Omnicity’s business growth plan for fiscal year 2010 several weeks ago. The company stated they will continue to partner with rural electric membership cooperatives (REMCs) and rural telecom companies along with state and local governments in order to expand their network across rural America. Omnicity also pledged to expand their service offerings and become a total broadband solution.
Omnicity believes it will reach operational cash flow positive and build a liquidity floor under operations of $100,000 minimum by December 31, 2009. With regard to specific numbers for fiscal 2010, the company said they would continue to follow their basic business plan and complete several acquisitions which would double their subscribers to over 11,000 and double their revenue to $1.3 million per quarter.
David Bradford, COO of Omnicity, summarized, “We have a number of additional acquisitions in various stages of closure…these acquisitions alone, combined with an aggressive set of sales and marketing campaigns, should put us well in excess of 11,000 subscribers and annualized running rate revenue of well over $5 million by the end of the next fiscal year.”
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Omnicity Corp. (OMCY.OB) Announces Addition of New Board Member
Omnicity Corp., the Midwest’s largest and fastest growing fixed Wireless Internet Service Provider, announced today after the closing bell that it has added Mr. Richard H. Reahard to its Board of Directors.
Earning his BS in Business Administration from Indiana University in 1971 and his MBA from Butler University in 1975, Mr. Reahard is a Carmel, Indiana businessman. Mr. Reahard was President of Telecom Resource, Inc. from 1993 to December 31, 2004. His background over the last 35 years is in sales and marketing.
Richard Beltzhoover, Chairman of the Board of Omnicity, stated, “Rick has been a substantial investor and supporter of Omnicity since his first investment in 2008. In addition, Rick has been a long time business associate and will be a welcome addition as an independent member of our Board of Directors.”
Greg Jarman, CEO of Omnicity, commented, “Rick is a very knowledgeable and trusted advisor to our management group and I am very excited about his willingness to participate on our Board.”
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