Telecommunications Systems Inc. (NASDAQ-TSYS)

Price June 13, 2012-$1.37

TSYS is trading at a huge discount to our valuation.

Their last quarter (3/31/2012) sales were up 11% from the prior year to about $100 million, gross margins were 34% and they lost $.01 per share ($.4 million) compared to $.06 profit last year. They made $.06 per share on a Non-GAAP basis. Their net cash position is negative $83 million or $1.44 per share which is reflected in out valuation

The average analyst estimates for 2012 is about $450 million in sales, and $.22 in Non-GAPP earnings.

TSYS also has over 200 patents which they are working on monetizing.

Over 55% of CBEY’s shares are owned by institutions.

With over $400 million in annual sales, 200 patents, trading at a market cap of $80 million and at about a 77% discount to our valuation, we think this is a BUY.

Average trading volume is about 380,000 shares a day. There are about 58 million shares outstanding.

About Telecommunications Systems
TeleCommunication Systems, Inc. (TCS) (TSYS) is a world leader in highly reliable and secure mobile communication technology. TCS infrastructure forms the foundation for market leading solutions in E9-1-1, text messaging, commercial location and deployable wireless communications. TCS is at the forefront of new mobile cloud computing services providing wireless applications for navigation, hyper-local search, asset tracking, social applications and telematics. Millions of consumers around the world use TCS wireless apps as a fundamental part of their daily lives. Government agencies utilize TCS’ cyber security expertise, professional services, and highly secure deployable satellite solutions for mission-critical communications..


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