The problem with additional unbilled hours, is that if the hours were against fixed price contracts, this could cause the gross margins to drop a good bit. I think SABA does a lot of services in India. Similarly, if those folks were charging to R&D, instead of billing against contracts, it will force adjustments there as well. This company has always been a mess. How their board has allowed Yazdani to remain as CEO for all these years is shameful.
Possible - but gross margins dropping will not impact net margins - after all we are only shuffling around costs. Your R&D point may hold some water - the inference though was unbilled hours - i.e. should have been billed to an external customer - not uncharged cost hours from a suppllier. This implies sloppy practice not lower margins - or am I just seeing the cup half-full.
Bush Leaguer has it right. Both about the margins and Yazdani. I too hope someone is kicking the tires, but there aren't that many buyers out there now. When the music stops, sometimes there is a player who hasn't got a chair to sit on. May be the case with Saba, but I hope not. Fire Yazdani now. He has been a blight on this company and this market for 15 years and he needs to be sent away. I cringe at the amount of investor money he has wasted over the years. Get him out! He is more dangerous to investors than Obama.