What is Model N? Flatbush Watermill Thinks It’s a Good Buy

What is Model N? Flatbush Watermill recently disclosed ownership of more than 1.2 million shares of Model N Inc (NYSE:MODN). At the current price of company’s stock, Flatbush Watermill’s position amounts to more than $11.8 million, with the stake representing 5.4% of the company. Flatbush Watermill decided to invest in Model N since it considers that it has a good strategical position and is capable of bringing innovative products and services in the next decade, the fund said in its filing with the SEC.

Model N Inc (NYSE:MODN)

Model N showed a 20% increase in revenues for the previous quarter, the third of fiscal year 2013. The company’s net income under GAAP advanced to $1.5 million, versus the $1.2 million loss reported for the same period of the last year. In this way, the net income per share amunted to $0.06 in the third quarter of the fiscal 2013, compared to a net loss of -$0.16 per share for the third quarter of the previous year. For the next fiscal year, Model N forecasts revenues between $70 million and $80 million.

Model N is a company specialized in offering revenue management solutions, by providing clients the possibility to maximize their revenues and decrease revenue compliance risk. Flatbush Watermill is also a major shareholder in Retalix Limited (NASDAQ:RTLX), a software company with a focus on food and fuel retailers. Flatbush last week disclosed a decline in its stake in Retalix to 12.09% of the company, equivalent to some 2.9 million shares, valued at $87.3 million.

Recommended Reading:

Hedge Fund Advertising, Start Your Engines

Hedge Fund Returns in 2013: The Top 20

2 Billionaire Interviews You Need To Watch

Disclosure: none