Nighthawk Soaring To New Highs

We have been covering Nighthawk Systems Inc. (OTCBB: NIHK) for quite some time now and never have we once doubted the company’s enormous potential. The only problem was for awhile that the world had simply just not woken up and come to the realization of the ridiculously beneficial ROI that NIHK’s products provide. Today we feel that it is safe to say that things have changed and the future may be filled with even better news than what NIHK graced us with this week.

Nighthawk Systems, Inc. (OTCBB: NIHK), announced 3^rd quarter revenues of $232,710, bringing their total for the first 9 months of 2006 to $625,236. Although not huge number-wise, NIHK’s 3^rd quarter performance marks a trend that has been repeating itself more or less for the past 5 or 6 quarters. Steady revenue growth!!

NIHK’s third quarter revenue figure is nearly 2X that of Q3 2005 and CEO Doug Saathoff has recently noted that the company “has already closed more orders during the first 45 days of the fourth quarter than we closed during the recently completed third quarter, so we look to close the year on an even stronger note." Seems like the new partnership with American Messaging is working out ok, huh?

The company’s filing on 11/14/06 does note:

”The Company incurred a net loss of approximately $2.5 million during the nine month period ended September 30, 2006 and had a stockholders' deficit of approximately $2.6 million as of September 30, 2006. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Although no assurance can be given that such plans will be successfully implemented, management's plans to address these concerns include:

- Raising working capital through additional borrowings.
- Raising equity funding through sales of the Company's common stock.
- Implementation of the Company's sales and marketing plans. “

However, with no shareholder deficit we are no longer looking at a five cent stock? Are we? Furthermore, we believe that the end of Q4 and what is shaping up to be a banner ’07 will prove to everyone that NIHK is more than capable of becoming enormously profitable. If they were not why would Verizon Wireless (a former partner) and American Messaging waste their time?