MTM expects to recognize a margin on each product resold by MTM pursuant to the contract, which margin is expected to be only a small percentage of the total revenue received. Accordingly, MTM does not anticipate that this contract will have a material impact on its financial condition or results of operations.
This thing opened at 1.41 yesterday. Should get back there and beyond soon. Horrible financials. What is keeping these guys in business?
the reason they are still in business is because Pequot (now Firsmark) a venture capital firm, kept pumping millions of dollars into them every quarter for the last few years. Pequot had enough but now GE decided to throw few millions at them. And no there is nothing that GE knows that we don't know. Pequot acquired few resellers of computer products (Cisco, Microsoft, Citrix) around the country and formed mtm, sucked the entrepreneurial spirit from all these small companies, added a senior layer of incompetent and overpaid management and just has not been able to make the amalgamation of all these small companies profitable. All the companies that Pequot acquired were profitable but they just couldn't make them profitable as a whole. mtm has been a big joke in the VAR business community. They have nothing innovative to offer. They are just a reseller of Cisco, Citrix, Micorosoft, etc. and have strong competitors in every region of the country. They have never been profitable nor stand a chance of ever getting there. They had to do two 50% pay cuts during the last two quarters and a bunch of layoffs and still can't show a profit. It's really a very sad story that is nearing the last chapter which will most probably be chapter 7 very soon.