Read further into the report. The profit came from recognizing the sale of field services this quarter. They got $1mil up front and $1.9 in a promissory note to be paid over 4 years, but they claimed all 2.9 mil this quarter. That is a onetime thing that offsets the $1 million loss on continuing operations. They wont have this next quarter if they can't turn a profit on their current operations.. Also, even though SG&A was down in amount, it was up as a % of revenue from 2012. Not a sign that the company is operating lean. Lastly they are in default with two different banks on their two lines of credit and no forbearance extensions to date.
On the bright side debt is down, and it looks like the company has some operating cash. Again this is from the sale of field services but it does give them some breathing room. Be interesting to see what they do with it. IMHO the biggest challenges they face are keeping the banks from acting and trying to get their stock price above delisting value. Turn a real profit (in operations, not by selling assets) and both of these issues could resolve. I guess we wait for 2Q now,