When you put the November 1st 2012 call together with the January 15th 2013 Needham conference you get something I find really interesting. During the November call they say cash was up around 7.5 million and during the Needham conference just recently they said cash was up around 8 million at the end of the quarter. This being said, it sounds like Q4 might just be cash flow positive.
With all the subtle positive news I dont see how we don't move consistenly up into the report as see a nice leap again that day.
Wow, when will it be learned that cash doesn't mean anything here? If it did, the stock never would have taken a dive like this, especially when it had $75-$100 Million and no debt at one point. It's about positive earnings, and sales growth. All cash does is keep the company afloat. It doesn't move a stock. Just take a look at Apple and their cash. Why isn't the stock at all time highs then?
Once again, we have another long living on a prayor and trying to avoid the truth.
"Wow, when will it be learned that cash doesn't mean anything here"
The point I'm making, potato head, is that in the event the company was sold, its current value is way more than the current stock price. That is why the company took steps to make a buy out uneconomic. The stock market will eventually catch up and the share price will more accurately reflect the true value of the company's assets.
Sorry, Its expected that SMSi will be cash flow positive by us. The outside investment community might see it as a suprise though. The real suprise is that some additional cash flow may have been provided by business and not just taxes.
The $7.5m is a tax rebate. Slide 18 shows the operating loss for Q4 was $3.7m. The operating loss for Q3 was $5m so the loss per quarter is reducing. Which is as expected as the volume of products shipped ramps up with Sprint and T-Mobile and they take priudent management action by driving down operational costs.
Slide 17 also shows the total cash position at the end of Q3 was $34.5m with total assets of nearly $58m. With 35.88m shares outstanding the company is worth $1.62 a share. That values all their products and contracts at $0. That is why this stock is way oversold.