Small cap cloud or mobile app security stocks like Mitek Systems, Inc (NASDAQ: MITK), Qualys Inc (NASDAQ: QLYS) and Cloud Star Corp (OTC: CLDS) may not be on your trading screens just yet, but it might be a good idea to keep an eye on them. After all, cyber attacks on applications and websites are on the rise and could deter both consumers and enterprise level customers from implementing cloud computing technology. With that in mind, here is a quick look at all three small cap stocks and some of the technology solutions they have to offer:
- Mitek Systems, Inc. Focused on the development, sale and service of software solutions related to mobile imaging applications and intelligent recognition software, Mitek Systems offers apps that allow camera-equipped smartphone users to deposit checks, pay bills, save receipts and fax documents and these solutions also work with the iPhone, Android, BlackBerry and tablets while the server-side system is phone-agnostic. Mitek Systems recently issued a press release noting that its technology has facilitated more than $40 billion in check deposits and that mobile deposit adoption has exploded because it is a win/win for banks and their customers. In fact, more than 12 million Americans have apparently used mobile deposit technology while a “leading bank” has reported that in the last quarter of 2012, 6% of its consumer deposits were made through a Mitek Systems’ enabled Mobile Deposit application (QuickDepositSM) resulting in 95% lower costs than if the check had been deposited via a teller. Moreover and when Mitek Systems last reported earnings, it was noted that 708 financial institutions to date had been signed up and 318 customers were live at the end of last year. On Friday, Mitek Systems fell 0.48% to $4.12 (MITK has a 52 week trading range of $1.90 to $6.26 a share) for a market cap of $107.50 million plus the stock is down 31.4% over the past year and down 36.1% since early 2011.
- Qualys Inc. A provider of cloud security and compliance solutions, Qualys Inc’s QualysGuard Cloud Platform and integrated suite of solutions helps businesses simplify security operations and lower the cost of compliance. Back in March, Qualys Inc announced that QualysGuard(R) Vulnerability Management (VM), which automates the lifecycle vulnerability management for organizations large and small, was once again named the "Best Vulnerability Management Tool" by SC Magazine after winning the award five times before. Before that, Qualys Inc announced an agreement to expand its relationship with Verizon Communications Inc. (NYSE: VZ) to deliver new advanced cloud-based IT security and compliance management services. However, Qualys Inc’s shares back in February sank when the company beat expectations but provided a guidance that fell short of Wall Street expectations. On Friday, Qualys Inc rose 4.59% to $11.86 (QLYS has a 52 week trading range of $10.18 to $16.38 a share) for a market cap of $372.64 million plus the stock is down 16.2% since last October.
- Cloud Star Corp. A cloud computing company providing security, technology and products to the technology marketplace, Cloud Star Corp develops security products for the cloud computing environment – including patent-protected remote access security devices such as MyComputerKey™. Late in March, Cloud Star Corp announced a joint venture and purchase option with App Ventures Ltd. of Hong Kong in order to expand the company’s cloud security presence into the online applications security sector as the agreement provides a technology, development and revenue sharing partnership. Cloud Star Corp has since introduced App Secure™ - a sensor technology with a secure communication framework that detects web-based attacks on web Apps and websites. In addition, Cloud Star Corp’s MyComputerKey is a USB device that inserts into a home computer to allow access to a remote machine or a cloud based environment and the company intends to add biometric authentication to it as a backup just in case passwords are compromised. Once testing is done, Cloud Star Corp will introduce the MyComputerKey into the consumer marketplace as well as come up with an enterprise version for corporations with mobile workforces. On Friday, Cloud Star Corp fell 8.7% to $1.05 (CLDS has a 52 week trading range of $0.11 to $1.47 a share) for a market cap of $102.06 million plus the stock is up 775% since mid February.
As cloud computing and mobile apps increasing become part of our every day lives, we are probably going to be hearing more about small cap stocks like Mitek Systems, Inc, Qualys Inc and Cloud Star Corp and the solutions they offer.