Recently Numerex announced the launching of their IOT Platform for Rapid Deployment of Enterprise- Class Industrial Internet of Things Solutions nxFAST.
Numerex claims that the platform will provide the ability for developers/enterprises to utilize the platform for rapid and simple end-to-end deployments, specifically for industrial and commercial businesses.
But what does this mean? At Numerex, the mantra for years has been around their DNA: “…the combination of experience in building and delivering Device, Network and Application tools and a vast knowledge of managing the business support services required by customers employing machine-to-machine (M2M) technologies. It is a secure solution for the M2M customer seeking simple, quick execution through a single point of contact.”
How is this any different?
The announcement of the launch of this new solution validates that the industrial market is primed for new solutions to help enable companies connect their products and services with business logic to advantage of what the IoT has to offer. And as companies look for ways to save money and create new revenue streams, Numerex believes nxFAST presents a great opportunity for industrial businesses to get there.
We are already witnessing the rise in smart farming, smart cities, so the industrial market is only becoming bigger than what it is today. And as more enterprises are becoming connected, the opportunity to make a custom solution is imperative especially where timing is everything – bringing these solutions live fast enables companies to move quickly as they race to become more competitive in their offerings.
So what does this mean for Numerex after announcing lower results in Q1? Numerex has been crushed recently by Wall Street, down 17% since the close of market the day before they announced Q1 results and more than 21% year-to-date.
On the earnings call, Numerex stated that the loss was due to deferred revenue from delayed product orders, but was very optimistic that the revenue deferral will not happen in future quarters, however is this the real reason they’re down?
We don’t want to say, “see, we told you so”, but we believe a lack of transparency and a lack of forward marketing contributed to the company’s decline. (see blog from March 13, http://www.jbrehm.com/blog/2015/3/13/an-open-letter-to-numerex ).
While Numerex has stated that they planned to stir revenue growth from new customers and with additional new product launches in the next few quarters, but will this be enough?
So while Numerex is trying to shore up its position as an IoT thought leader by announcing nxFAST, does this prove that they are in the IoT game?
To us, Numerex seems like one company with multiple messages. And its marketing and messaging vision seems dated, at best. While the company is one of the longest operating organizations in the space, and has a tremendous portfolio of intellectual property and best-of-breed solutions, announcing a “me too” platform for “rapid deployment” doesn’t seem like a cure-all for what ail’s it.
Is the market cap of Numerex its true value? Or is the sum of the parts much more? Is it time to start looking at the upper management issues at Numerex? Is it just a messaging problem? Is the team all on the same page? Or does Wall Street just not get IoT?
We don’t know.
While we asked Numerex’s PR team for a briefing on the announcement, they have not gotten back to us. So we believe that Numerex has still a lot more work ahead of them and hopefully, it is not too late for them to turn things around.
By the way, Team Numerex, we can help you. ;-) Just give a call.