Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, July 31, 2009

Article Excerpt

RDM CORP., $1.05, symbol RC on Toronto, reports that its revenue rose 13.4% in the three months ended June 30, 2009, to $5.9 million from $5.2 million a year earlier. The company earned $175,000, or $0.01 a share, compared to a loss of $298,000, or $0.01 a share. RDM sells software and hardware for electronic-payment processing, mainly in the United States. Its Image & Transaction Management System lets banks scan all types of cheques, and then route them to any location for immediate processing. The company benefits from the recurring nature of its payment-processing-services revenue. In the latest quarter, this jumped 47%, to $2.5 million from $1.7 million a year earlier. Transaction volumes for RDM’s Image & Transaction Management System averaged 3.8 million items per week, up 36% from 2.8 million. RDM spent $1.1 million, or 19% of its revenue, on research and development in the latest quarter, so it’s more profitable than it looks. It also holds cash of $16.9 million,…