Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Up 78% Since June, Is Support.com, Inc. (SPRT)’s Rally Supportable?

It’s been a bit more than a month now since my fellow Fool Seth Jayson related how online tech support com pany Support.com, Inc. (NASDAQ:SPRT) trounced Wall Street’s expectations in its Q4 earnings report. Since then, we’ve been waiting for full specifics on just how good a quarter Support had, in the form of its Form 10-K filing with the SEC.

Support.com, Inc. (NASDAQ:SPRT)While waiting, I had the opportunity to talk with CEO Josh Pickus to get some details on how business is going. Now the 10-K has arrived, giving us the rest of the story. So here’s the rundown:

Facts and figures
On the surface, Support.com looks chancy. GAAP profits ran negative last year. However, things are starting to improve.

The company has notched back-to-back GAAP-profitable quarters. It’s expected to turn full-year profitable this year. With free cash flow firmly positive for the year ($1.5 million) and revenues on a tear (total revenues up 34%, services revenues up 55%), while cost of services rose only 22%, Support is on track to achieve this goal in 2013. Longer term, analysts have the company pegged for 20% annual earnings growth.

Support.com, Inc. (NASDAQ:SPRT)’s income statement strength is mirrored on its balance sheet, which shows $56.4 million in cash, equivalents, and short term investments, against negligible long-term debt. Pickus points out that his firm needs to keep a cash cushion of about $20 million to fund operations and assure customers of its financial strength, but that still leaves a lot of dry powder with which to fuel explosive growth.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.