As many communications company try to get a bigger part of the market, Broadsoft (BSFT, Financial) is at the same time making sure it remains one of the top organizations that enable customers to receive their services. With new technologies being introduced to the market, the company is hoping to keep the dollars rolling by building a steady profit margin. As with other services that the company offers to the hungry public, its hosted PBX is a major profit move that is bringing in plenty dollars.
What is Broadsoft?
Broadsoft is a communications software and service provider that provides global communications through the 70 partnership companies that they work with. On its platform, there are millions of subscriber accounts present. Its main functions are to deliver top innovative tech communication through its various apps and services to businesses worldwide. Some apps and services that Broadsoft uses on its platform are BroadWorks, BroadCloud, and BroadTouch. BroadTouch is necessary to use to bring about proper data delivery, and cloud services as well as to enable fixed-line and internet providers to reach its broadband and wireless networks. For customers who want to go further, they can take advantage of the company's hosted PBX service.
Already, the company is standing on the threshold of greatness as it boasts 750,000 deployed mobile communications lines already in use by consumers. Since deploying such a high number mobile unified communications lines, Broadsoft's new app the UC-One now has the power to reach a greater amount of audience with its single interface of voice, video, call logs, business directories and instant messaging service all into one place.
Broadsoft stocks
As the company continues to show a marked increase in sales, stock investors are watching carefully to see if there will be any let up in its profit making. Once the company starts experiencing losses, investors fear the losses will spill over into their laps and thus cause a decrease in share prices.
Since 2015, the company reported that it had accumulated $9.1 million in its fourth quarter profit. At that same time, the company saw its shares going at 30 cents each. For its stock options expense and costs that are non-recurring, earnings rose to 64 cents per share.
Revenue posted by the company during that same period registered to be $65.8 million, which beat Wall Street's expectations. Net income reported during the entire year was $1 million, which equals to about 3 cents per share. A reported revenue figure of $216.9 million was noted.
Still, Broadsoft is expecting its first quarter fiscal year revenue to drive into the $52 million to $56 million range. However, Zach's analysts are touting that quarter fiscal revenue should fall in the range of $51.6 million.
As other companies' analysts continue to voice their expectations about the company's revenue, Broadsoft analysts are predicting a $1.40 to $1.54 per share yearly earnings and a predicted revenue figure of $260 million to $268 million.
Still, although the stock had seen good times, there were bad times as well. Since the beginning of 2015, Broadsoft has seen a decline in its stock value. Since of late, however, the stock started showing signs of recovery and added a mild 15.9% over a four weeks period.
As investors look at the future of the company, it is not sure whether the stock will fluctuate. However, as already seen, the company is more likely to keep moving its profit margin upwards and not downwards, especially since it is offering consumers a chance to buy into its hosted PBX system. Presently, while Broadsoft is showing many signs of improvement, the bottom line is that investors will continue to look at it more favorably.
