NPA-v: Alphinat - Bottom fishing opportunity?

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The French Government project is well underway, which means Alphinat can build on the success of this project to convince other potential suitors. Not only is the French contract a large & vast program which will have a material impact on the company's bottom line, it also serves as a powerful marketing tool.



Press Release Source: Alphinat inc. On Tuesday February 23, 2010, 4:10 pm EST

MONTREAL, Feb. 23 /CNW Telbec/ - Alphinat Inc. (TSX Venture: NPA - News) is pleased to announce that the "Direction Générale de la Modernisation de l'État (DGME)" has launched new online government services in less than 12 weeks thanks to the Alphinat SmartGuide(TM) suite and Bull's professional services.

Acquired by the DGME following a public tender process that saw 15 companies submit proposals, Bull's bid which included the SmartGuide(TM) suite was retained for the design, creation and execution of online administrative processes.

The first e-government services went online on December 16, 2009 on the "Mon.Service-public.fr" website, the French government's main public services portal which is proving to be a great success with tens of millions of hits in its first year of operation.

Eric WOERTH, Minister of the Budget, Public Accounts, the Civil Service and Reform of the French State declared during a press conference held on February 12, 2010:

"Today, all French citizens can store their supporting documents on http://www.mon.service-public.fr in order to make them accessible to various public services. From their account on this government portal, they can also access various public services such as notifying all ministries and agencies of a change of address.

With minimal publicity, registered accounts on Mon.Service-public.fr numbered 150,000 in October whereas today, close to 400,000 have been created. We are now aiming for 3,000,000 accounts by the end of 2010 and 11,000,000 by the end of 2011. That is ambitious but attainable".

Mr. Arnaud LACAZE, Head of Service, inter-ministerial projects at the DGME declared:

"We chose the SmartGuide(TM) solution based on its promises of quick and simple building of e-government services; we are pleased that these promises have been upheld."

SmartGuide(TM) version 4, now available, greatly increases productivity in deploying e-government services by allowing line of business personnel to translate their know-how of government services and processes into intelligent Web applications that adapt to the specific context of each user.

"With each release of SmartGuide(TM), we aim to continually improve on usability and to incorporate features that further increase productivity by reducing the need for custom programming in order to respond to specific business needs of clients. We are proud that SmartGuide(TM) helped the DGME meet its ambitious deadlines." concluded Philippe Lecoq, President and CEO of Alphinat.

About the DGME

The French State Modernisation Agency, the DGME (Direction Générale de la Modernisation de l'Etat) is part of the Ministry for the Budget, Public Accounts, the Civil Service and Reform of the French State. The DGME oversees the general revision of public policies and supports other government Ministries in their transformation and modernization strategies. Paying careful attention to users' expectations, the DGME also leads structured inter-ministry initiatives in the fields of e-government, simplification of administrative processes, improving citizens' interactions with government and the quality of public services.

About Alphinat

Alphinat Inc. develops, markets and supports software technology that enables non-technical managers to configure and deploy Web applications and utilities to helps organisations and governments better serve clients. This technology uses sophisticated data organisation and processing software to automate interactions between systems, employees, clients, suppliers and partners. The software is ubiquitous across organisational entities and information processing platforms, permitting a high level of collaboration in delivering complex service outcomes using existing legacy systems.

Alphinat technology could also prove useful to the healthcare, banking, insurance, telecommunications and other sectors, in modernising, automating and rendering cost-effective a number of business processes at a fraction of the cost associated with conventional customized solutions. For more details about Alphinat or its software suite, please visit http://www.alphinat.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

This document is a free translation into English of the original French press release. It is not a binding document. In the event of a conflict in interpretation, reference should be made to the French version, which is the authentic text.

For further information

Mr. Philippe Lecoq, Chief Executive Officer, Alphinat Inc., (514) 398-9799, ext 22

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Alphinat will be presenting at the Small Cap Conferences Series held in Calgary, on march 23 2010.

See the link below:
http://www.smallcapconference.ca/calgary0310.php


This is not only an opportunity for Alphinat to showcase for wealthy investors from the oil patch, but more importantly, they will have an opportunity to speak or enter in contact with some of the most prominent movers and shakers in the Canadian Small Cap Arena. Some of the influential people are:


- Ryan Irvine, president of Keystone Financials ( http://www.keystocks.com/TrackRecord.aspx )
- Brent Todd, Canaccord Wealth Management at Canaccord, small cap specialist ( http://www.brenttodd.ca/ )
- Brian Tang, president of Fundamental Research Corp., specializing in small cap and micro-cap ( http://www.researchfrc.com/about/aboutus.htm )
- Grant Howard, president of the Howard Group, again specializing in micro & small cap ( http://howardgroupinc.com/about_us.html )
- NAI 500, the ultimate link to the wealthy Asian community in Western Canada ( http://en.nai500.com/?q=node/12 )
- Karsan Value Funds ( http://www.barelkarsan.com/2010/01/kars ... sults.html )
- Baystreet, one of leading analyst report conglomerate ( http://www.baystreet.ca/ )
- Investment Pitch ( http://www.investmentpitch.com/ )
- Brian Pow, VP Research, Acumen Capital Finance Partners Limited - http://www.acumencapital.com
- Peter Knapp, President of Brian Mills Iradesso - http://iq.bmir.com
- Ian Bandeen, Vice-Chairman & CEO, CNQ Stock Exchange - http://www.cnq.ca
- Kelly Edmison, President of PenderFund Capital Management - http://www.penderfund.com
- Louis Paquette, Publisher of Emerging Growth Stocks ( http://www.emerginggrowthstocks.ca/ )
- Vic Alboini, President of Northern Financial Corporation and Chairman and Chief Executive Officer of Northern Securities Inc ( http://www.nfc.ca/index.htm )



Based on the above, Alphinat will be in an enviable position, accessing these powerful mediums and individuals, which are known as movers and shakers in the Canadian Small Cap Arena.

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Alphinat: 33% net margins in Q2; plans US/Europe contracts



Alphinat (NPA.v) is performing as planned, showing profitability for a second quarter in a row, with 33% net margins ! And had they not loss 92k on foreign exchange, the net margin would have been an astonishing 48%. As the large and extensive French government contract is rolled out, such enticing margins will provide meaningful impact on the bottom line. Working capital has been addressed, as explained below. The company has no long term debt and bears no goodwill and intangibles. Here are the highlights of Q2, from my perspective:


• Profitable in Q1 and Q2 for a total of +.01$/share
• Q2 showed incredible net margins of 33% but one has to acknowledge 92k of foreign exchange loss, which would have brought the net margins to 48%, a true spectacle in itself• The company remains long term debt free
• Working capital needs further analysis, as 455k are deferred revenues and 325k owed to directors/friends, thus there is no more deficit
• Extremely high gross margin with a low cost structure
• Plenty of backlog with the French and Quebec government, and waiting impact from the Bell Canada joint venture; Swiss Government expansion are still in the wings
• The company has no lawsuits
• Expenses are well under control with reasonable salaries
• Appointed QIS Capital for investor relations
• A large block of shares was purchased recently at .155$


Important statements to highlight from the Q2 MD&A are the following:

From page 2 : “…In Europe, commercial activities are under way with large systems integrators with whom Alphinat has delivered various projects…”

From page 2: “…Finally, Alphinat has undertaken steps to position itself on the American market. The Company has initiated a recruiting process for commercial and sales talent and has entered into partnership discussions with firms that have a strong US presence. “


Of course, the above is simply my personal understanding and not to be construed as investment advice. I’m not a broker, promoter, director, manager or employee of the aforementioned company, just a shareholder. Some typos could have occurred, do your own due diligence.

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Revenu Quebec has handed more than 663 000$ of contracts to Alphinat in the past 2 years. Here’s both pertinent press release extracts :


MONTREAL (Quebec), July 29 2008 - Alphinat Inc. (TSX-VN : NPA) announces its interim financial results for the period ending May 31, 2008…
…As part of it’s implementation, Alphinat is pleased to announced it has won a first contract from the ministère du Revenu du Québec (MRQ) for an amount of $388,610. Through this agreement, MRQ will benefit from the support of the SmartGuide software experts at Alphinat for the implementation, evolution and use of this tool for the development of constituent-centric Internet services.


And then


MONTREAL (Quebec), May 20, 2010 - Alphinat Inc. (TSX Venture: NPA) is pleased to announce the renewal of a contrat with Revenu Québec to the amount of $275,169. Through this agreement, Revenu Québec will benefit from the support of the SmartGuide™ software experts at Alphinat for the implementation and use of this tool for the development of constituent- and enterprise-centric Internet services….


Revenu Quebec is only arm of the Quebec government, divided into more than 250 ministries. Obviously, Revenu Quebec offers an intense online customer interaction, in comparison to smaller ministries. But remember, Bell Canada paid up front fees to access the remaining workload opportunities.

On a side note, Quebec Healthcare ministry could also represent an enticing venue for both parties, as one can imagine multiple online forms are required, with large databases. Then, could Alphinat and Bell duplicate the results to other provinces, for their respective Revenu and Healthcare departments? How about the federal government which has been mentioned in previous MD&As? Breaking even with about 300k per quarter, it’s not hard to foresee meaningful EPS in the near future, even discounting US penetration, Europe expansion and other vertical markets being addressed.

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Insider trading resurfaces, as the stock slips under the 10 cents mark during the summer doldrum. Benoit Ste-Marie is slowly creeping towards a 1M share position, bougth with his own money, as depicted from the insider trading report available on SEDI.


Alphinat inc. (NPA) As of June 29th, 2010

Jun 22/10 Jun 18/10 Ste-Marie, Benoit Direct Ownership Common Shares 10 - Acquisition in the public market 49,000 $0.090
Jun 22/10 Jun 15/10 Ste-Marie, Benoit Direct Ownership Common Shares 10 - Acquisition in the public market 1,000 $0.095

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As predicted, the insiders are showing faith and putting their own money on the table once again.

We can see the Executive Vice President (who owns more than 4M shares already) and a director Benoit Ste-Marie (creeping up to the 1M share status) provide share price support in the recent trading sessions.

Reassuring for minority stakeholders, knowing that nobody throws their money on a wild goose chase after the financial crisis.


Alphinat inc. (NPA) As of August 9th, 2010

Aug 09/10 Aug 03/10 Ste-Marie, Benoit Direct Ownership Common Shares 10 - Acquisition in the public market 38,000 $0.080
Aug 09/10 Aug 06/10 Page, Curtis Direct Ownership Common Shares 10 - Acquisition in the public market 10,000 $0.080
Aug 09/10 Aug 04/10 Page, Curtis Direct Ownership Common Shares 10 - Acquisition in the public market 10,000 $0.080
Jun 22/10 Jun 18/10 Ste-Marie, Benoit Direct Ownership Common Shares 10 - Acquisition in the public market 49,000 $0.090
Jun 22/10 Jun 15/10 Ste-Marie, Benoit Direct Ownership Common Shares 10 - Acquisition in the public market 1,000 $0.095