Nice Quarter. I like the way the company is being managed.
I like the way Lehman is leading the company. He's definitely the right guy for the job.
It's pretty clear he took the first year to stablize the company, get 'his' team in place, set the agenda, and identify the low hanging fruit.
Now, over the last year, he has cut the fat, motivated the sales force, gained new accounts, and significantly increasted the service sell through. The results are showing!
I'm guessing you've all heard the saying that you bet the jockey, not the horse. And I'm guessing those of you who've been in the work world for a few years know the incredible improvements that can take place when you have an engaged, motivated, and focused leader who knows his business and is willing to take necessary steps to make change. Lehman clearly has made some good changes here.
As far as the R&D concern some have, I agree. However, you notice that they've converted the high cost outside consulting arrangement into a much lower cost in-house program. With a good leader, an in-house program can be MUCH more effective. Hopefully they identify some areas for development and add in house personnel down the road (or maybe pick up some capability through an acquisition).
As far as growth goes, in the short term gaining accounts and increasing service sell through will keep things going, but they do need new product offerings. I like the idea that Lehman is being patient with making acquisitions. No sensing overpay just to get near term revenue growth, but I hope they are putting some emphasis on some 'bolt on' products that they could pick up cheap and leverage. Or maybe go big and do a merger of equals?
I'd be really disappointed if they issue another dividend. They need to be putting this cash to work growing the business.
p.s. Sounds like there may be some employees posting here on the board, some of whom may be impediments to change and if we're lucky will be on Lehman's chopping block. Care to share your names
I noticed there was a money manager who was new to the story on the conf call. I'm sure the stock will be hitting a lot of institutional manager screens. Maybe a few will like what they see. It should put a floor under the price as they accumulate. Now, Mr Lehman just needs to keep moving the story forward.
I'll reiterate, I really hope they don't do another dividend or a buyback. They've got ammunition on the balance sheet and they need to be scouring the small public / private medical device companies for some synergistic acquisitions.