ININ is recognized by institutions like Gartner and Datamonitor as a market leader in contact center solutions. They have averaged double-digit growth in the past five years with no long-term debt. Earnings in Q3 beat estimates by a wide margin, management has also increased guidance for full-year order growth. Total orders increased by 47 percent from the third quarter of 2012, with cloud-based orders up 75 percent to comprise 48 percent of total orders. Revenues increased by 32 percent over the third quarter of 2012. Recurring revenues, which include support fees from on-premises license agreements and fees from cloud-based solutions, increased 29 percent to $37.5 million and accounted for 48 percent of total revenues.
We believe the company has an experienced management team, which will continue to deliver great results in the future. The very high P/E ratio offers misleading valuation, as margins are depressed because of high maarketing and R&D investments. We estimate a normalised forward P/E of 40 for 2014. Based on our calculations, ININ offers at least 50% upside from current prices and qualifies for one of the best stocks to buy right now. More information