RedChip Weekly Newsletter

Catasys (NASDAQ: CATS) Reports Record Revenue of $8.8M for Q3

Catasys (NASDAQ: CATS), a leading AI and technology-enabled healthcare company, reported its financial results for the third quarter ended September 30, 2019, with revenue increasing 102% year-over-year to a record $8.8 million.

Why It Matters: CATS third quarter results show the company is well on-track to reach its previously issued full year guidance of $35 million in 2019. Looking to 2020, CATS expects to report revenue of at least $90 million, representing year-over-year growth of 157%, driven primarily through accelerating enrollment growth.

Key Quote: “Enrollments continued to increase at a rapid pace with nearly 1,500 net new enrolled members in the OnTrak program during the third quarter of 2019. We expect to close out 2019 with a strong fourth quarter despite encountering a few headwinds throughout the year, including one national plan freezing our launches pending a national behavioral health RFP, the onboarding of hundreds of new care team members across the country, the integration of new digital systems and the recruitment of a national commercial team, all of which are part of our investment in supporting the tremendous growth we anticipate in 2020, a year of exponential growth as reflected by our revenue guidance indicating that business will more than double.” – Terren Peizer, Chairman & CEO

The Backstory: CATS is a leading AI and technology-enabled healthcare company whose mission is to help improve the health and save the lives of as many people as possible. Its Catasys PRETM (Predict-Recommend-Engage) platform predicts people whose chronic disease will improve with behavior change, recommends effective care pathways that people are willing to follow, and engages people who aren’t getting the care they need. By combining predictive analytics with human engagement, Catasys delivers improved member health and validated outcomes and savings to healthcare payers.

Disclosure

Catasys (CATS) is a client of RedChip Companies, Inc. CATS agreed to pay RedChip Companies, Inc. a $5,000 monthly cash fee, beginning in February 2017, for RedChip investor awareness services and consulting services.

Digital Ally (NASDAQ: DGLY) Upgrades and Extends Contract with zTrip

Digital Ally (NASDAQ: DGLY), which develops, manufactures and markets advanced video recording products for law enforcement, emergency management, fleet safety and security, announced a contract extension and upgrade with zTrip for the Company’s DVM-250 in-car video event recorder and video management platform, FleetVu Manager.

Why It Matters: zTrip will now implement nearly 300 DVM-250 units integrated with FleetVu Manager in Jacksonville, FL and will upgrade an additional 125 units in West Palm Beach, FL. zTrip, North America’s largest taxicab company with a fleet of more than 5,000 vehicles in 19 U.S. cities, continues to set the standard for driver and passenger safety, technology innovations and customer service. As a long-standing customer of Digital Ally, zTrip has seen the long and short-term return on its investment since the implementation of the Company’s DVM-250 video event recorder and FleetVu Manager platform.

Key Quote: “As the leader in the taxicab industry, our goal is to provide the safest experience in personal transportation. Digital Ally has been a crucial, long-term partner in reaching this goal. In a recent expansion of our partnership to our Colorado Springs fleet, we spent 60 days focusing on driver behavior and using it as a coaching period. With a few key changes to our driver safety strategy, zTrip has been able to realize an 80% reduction in claims in only eight months thanks to Digital Ally’s innovative technology.” Bill George, CEO of zTrip

The Backstory: DGLY, headquartered in Lenexa, KS, specializes in the design and manufacturing of the highest quality video recording equipment and video analytic software. Digital Ally pushes the boundaries of technology in industries such as law enforcement, emergency management, fleet safety and security. Digital Ally’s complete product solutions include in-car and body cameras, cloud and local management software, and automatic recording technology. Digital Ally products are sold by domestic direct sales representatives and international distributors worldwide.

Disclosure

Digital Ally, Inc. (DGLY) is a client of RedChip Companies, Inc. DGLY agreed to pay RedChip Companies, Inc., a $7,500 monthly cash fee, beginning in September 2017, for RedChip investor awareness services.

SinglePoint (OCTQB: SING) Reports Record Q3 Financial Results

SinglePoint (OTCQB: SING), a leading technology and acquisition company focused on making continued strategic acquisitions and investments in companies operating in high growth areas, announced its financial results for the third quarter ended September 30, 2019, reporting record revenues of $1,050,374 for the three months ended September 30, 2019, a 176% increase over the same period in 2018.

Key Quote: “This has been a great quarter for SinglePoint, we are very excited to see the growth of the company. We are establishing solid financials and we anticipate a big fourth quarter. Everything is firing on all cylinders and we continue to hit our numbers. We believe SinglePoint’s revenues will continue to grow as our subsidiary Direct Solar expanded into new markets.” – Greg Lambrecht, CEO

The Backstory: SING is a technology and acquisition company with a focus on acquiring companies that will benefit from management, capital and technology integration. The company’s portfolio includes mobile payments, industrial hemp and renewable energy solutions. Through acquisitions into horizontal markets, SING is building its portfolio by acquiring an interest in undervalued companies, thereby providing a rich, diversified holding base.

Disclosure

SinglePoint, Inc. (SING) is a client of RedChip Companies, Inc. SING agreed to pay RedChip Companies, Inc. a $10,000 monthly cash fee, beginning in June 2019, for RedChip investor awareness services and consulting services.

Quote of the Week

"Work hard, be a long-term thinker, develop tenacity and remember nothing happens without taking calculated risks."
-Phil Sassower, Chairman Phoenix Group